Summary
During times of market calm, antifragile investments will be a drag on portfolio performance. But when calm turns into chaos, they thrive. An investment portfolio does not need to load up on such investments to provide an effective hedge—even small positions held in antifragile investments can help during times of great turbulence.
While a portfolio with 100% cash provides a measure of stability during market turmoil, it doesn’t necessarily grow, whereas the antifragile portfolio will. In the end, ETFs offer advisors trading flexibility and a robust structure when markets are on their worst behavior.
Ron DeLegge is founder and chief portfolio strategist at ETFguide, and is the author of “Habits Of The Investing Greats.”