Non-Derivative Ways You Can Hedge Against the Market

Non-Derivative Ways You Can Hedge Against the Market

Assessment

Interactive Video

Business

University

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

The video discusses various hedging strategies, focusing on non-derivative options like the I Shares 20+ Year Treasury Bond ETF (TLT) and gold ETFs. It highlights the advantages of using TLT as a hedge against market downturns, comparing its performance to gold during past market corrections. The video also explores cost-efficient gold ETFs and introduces PIMCO's enhanced short maturity fund as a cash alternative. Finally, it explains the benefits of using derivative-free ETFs to avoid complexities like contango.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one non-derivative method mentioned for hedging against market risks?

Cryptocurrency

Real estate investment trusts (REITs)

Gold futures

I shares 20+ year Treasury Bond ETF (TLT)

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

During the 2008 financial crisis, how did TLT perform compared to the market?

TLT was down 2%

TLT was up 3%

TLT was up 33%

TLT was down 37%

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which investment was only up 3% during the 2008 financial crisis?

Real estate

Gold

TLT

S&P 500

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a cost-effective alternative to GLD for investing in gold?

Cryptocurrency

PIMCO enhanced short maturity fund

TLT

IAW

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main advantage of PIMCO's enhanced short maturity fund?

High risk and high return

Investment in long-term bonds

Low risk with a yield higher than money markets

Focus on emerging markets