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PSA: If you want exposure in your portfolio to the M&A market there's an ETF that does it: https://www.etf.com/MNA https://www.etf.com/MNA It's perhaps the si
by H8crilA 7y ago
PSA: If you want exposure in your portfolio to the M&A market there's an ETF that does it:
https://www.etf.com/MNA https://www.etf.com/MNA
It's perhaps the single biggest "alternative" strategy ETF.
- downrightmike 7y agoYTD isn't even 1%, almost anything else has done better.
- H8crilA 7y agoIt's an alternative strategy, meaning it tries to be decorrelated with anything else. It may be useful if you want a balanced portfolio, not just a 100% stocks bomb. Historical yield is not everything. Things change, past performance is not necessarily a predictor of future success.
- mruts 7y agoI mean SPY has returned like 3% YTD. But that’s not really the point. M&A has zero to very low Beta exposure, so it’s almost completely uncorrelated to the market. This, in general, is a good thing. A lot of quant market neutral hedge funds only return 3-5% per year. Compared to the S&P, this looks pretty bad. But the goal of these funds isn’t to provide the best returns, it is to provide the best risk adjusted returns. You may ask, why would I care about that? The answer is that you can synthetically match any return by either buying or selling (borrowing) at the risk free rate. So if I had a fund that had returns of 4% and volatility of 2%, I could turn it into 2 and 1, 8 and 2, or 16 and 4, or whatever.