The exchange-traded fund industry is trying to make pair trading strategies more accessible to everyday investors.
Tidal Financial Group's Michael Venuto filed for eight two-stock ETFs last month: long one stock and short the other.
“They should probably come out in about two or three months,” Venuto, the company’s chief investment officer and co-founder, said on CNBC’s “Halftime Report” this week.
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These new ETFs aim to simplify long-short trades by bundling both positions into one product and eliminating the need for separate trades, according to Securities and Exchange Commission filings.
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VettaFi's Todd Rosenbluth highlighted the convenience these ETFs offer investors.
“Instead of having to short sell something yourself, the ETF does it for you. So there's a practical factor,” the company's head of research said on CNBC's “ETF Edge” this week.
This streamlined approach could attract investors seeking easy access to offsetting market positions.
Rosenbluth also noted the potential popularity of these ETFs.
“I think ETF adoption will continue, even though we have some of these niche-focused products in our portfolio alongside Vanguard 500,” Rosenbluth said.
CORRECTION: This article has been updated to reflect the description of two-stock ETFs filed with the Securities and Exchange Commission.