AGF US Market Neutral Anti-Beta Fund

BTAL

Market cap $286M

AGF U.S. Market Neutral Anti-Beta Fund ETF (BTAL) excels as a tactical hedge, not a traditional buy-and-hold investment. BTAL monetizes the spread between low and high beta stocks, thriving in risk-off or overextended market environments. The ETF is delta-neutral by sector, reducing portfolio volatility and drawdowns, and improves Sharpe ratio when paired with equities.

When high-beta stocks stumble and markets turn volatile, AGFiQ U.S. Market Neutral Anti-Beta Fund ( NYSEARCA:BTAL ) is designed to deliver.

AGF U.S. Market Neutral Anti-Beta Fund (BTAL) is long in 200 low-beta stocks and short in 200 high-beta stocks. BTAL has value characteristics and low company risk, but its track record is uncompelling, with negative return since 2011. FTLS stands out as a superior long-short ETF alternative for investors seeking risk-adjusted performance.

BTAL offers a market-neutral strategy by going long low-beta and short high-beta U.S. stocks, providing S&P 500 hedging. The ETF plays the low vs. high beta spread, offering stronger short-term hedging and better long-term preservation than classic shorts. In my view, it must be included in a portfolio with a clear strategy; otherwise, it's dead weight, not added value.

AGF U.S. Market Neutral Anti-Beta Fund ETF is designed as a market-neutral equity hedge, long low-beta and short high-beta stocks, to benefit investors during market corrections. Despite its intent, the Fund has underperformed benchmarks and is best used only during significant market declines, not as a long-term core holding. Given current market conditions, I recommend a 'Sell' rating on BTAL. Despite my negative sentiment, BTAL could benefit from economic uncertainty and geopolitical risks.

BTAL is a market neutral ETF that profits from the spread between low and high beta stocks, ideal for hedging in volatile markets. The fund is long low beta stocks and short high beta stocks, thriving in down markets and reducing portfolio volatility. BTAL has shown strong performance in past bear markets and is expected to outperform in today's environment with stretched valuations.

The AGF U.S. Market Neutral Anti-Beta Fund ETF is a strong hedge against market downturns, outperforming the S&P 500 during recent volatility. BTAL's strategy involves going long on low-beta stocks and short on high-beta ones, providing a negative correlation to the S&P 500. A 33-67 allocation between UPRO and BTAL could offer superior risk-adjusted performance, with lower volatility and better Sharpe ratios than the S&P 500 alone.

John Davi, Astoria Portfolio Advisors Founder & CEO, joins CNBC's Courtney Reagan on ‘ETF Edge' to discuss Astoria's top ideas on how to hedge against tariff risks.

Wall Street was in the red on Tuesday as strong economic data dampened chances of near-term Fed rate cuts. Defensive ETFs may help in this scenario.

The S&P 500 has doubled in the last five years, raising concerns about a potential market top and the need for portfolio hedging. Traditional bonds have struggled due to rising interest rates; alternatives may offer better downside protection. Diversifying with alternatives, like CTA's managed futures or BTAL's market hedge, can reduce portfolio volatility and enhance risk-adjusted returns without significantly cutting equity exposure.