Navigating ETF Investing Like a Hedge Fund Veteran
What Recent ETF Investing News Means for Your Portfolio
Recent news about hedge fund veterans shutting down their ETFs due to steep declines has raised concerns among investors. However, this doesn't mean you should avoid ETFs altogether. In fact, ETFs like the Academy Veteran Impact ETF and Draco AI ETF offer diversified exposure to various strategies and can be a valuable addition to your holdings. For instance, the Academy Veteran Impact ETF has a net expense ratio of 0.95% and has returned around 8% over the past year.
Notable examples of successful ETFs include those that focus on specific sectors or strategies, such as the Invesco QQQ ETF, which tracks the Nasdaq-100 index and has returned around 25% over the past year. Meanwhile, the SPDR S&P 500 ETF Trust has a net expense ratio of 0.0945% and has returned around 15% over the past year.
The Setup: Understanding the Current ETF Landscape
The current ETF landscape is characterized by a wide range of options, from broad-market ETFs like the SPY to more niche offerings like the Academy Veteran Impact ETF. Hedge fund veterans often use ETFs for their liquidity and lower costs, which can be beneficial for investors looking to diversify their portfolios. For example, the SPY has a beta of 1.00 and a standard deviation of 14.1%, making it a relatively stable option for investors. On the other hand, the QQQ has a beta of 1.03 and a standard deviation of 16.3%, making it a more volatile option.
According to Beer, investors should ask themselves how they would act if a 2008 or 2022 market downturn happens again. This highlights the importance of having a well-diversified portfolio and a solid investment strategy in place. For instance, an investor with a $25,000 account could allocate 20% to the SPY, 15% to the QQQ, and 10% to the Academy Veteran Impact ETF, with a 2% position size to limit their max loss to $500.
The Play: Building a Winning ETF Investment Strategy
So, what can you do to build a winning ETF investment strategy? First, consider the benefits of ETFs like the Academy Veteran Impact ETF, which offers exposure to a diversified portfolio of stocks and has a net expense ratio of 0.95%. You can also look at ETFs like the Invesco QQQ ETF, which tracks the Nasdaq-100 index and has a net expense ratio of 0.47%. Meanwhile, the SPY has a net expense ratio of 0.0945% and is a relatively stable option for investors.
When it comes to specific stocks, consider the performance of companies like Apple (AAPL), which has returned around 50% over the past year. You can also look at the options market, where you can buy call options on the SPY with a strike price of $420 and an expiration date in June. This could provide a potential upside of 10% if the SPY reaches $440 by the expiration date.
In terms of valuation metrics, consider the price-to-earnings ratio of the SPY, which is currently around 22. This is slightly higher than the historical average, but still relatively reasonable. Meanwhile, the QQQ has a price-to-earnings ratio of around 25, which is slightly higher than the SPY.
Your Action Step: Taking Control of Your ETF Portfolio
So, what should you do next? Start by reviewing your current portfolio and identifying areas where you can diversify your holdings. Consider allocating 10% to 20% of your portfolio to ETFs like the Academy Veteran Impact ETF or the Invesco QQQ ETF. You can also set an alert at a specific price level, such as $585 for the SPY, and consider buying or selling based on your investment strategy. For example, if you have a $25,000 account, you could allocate $2,500 to the SPY and set an alert at $585 to limit your potential loss to $250.
Meanwhile, you can also consider the support and resistance levels of the SPY, which are currently around $570 and $600, respectively. If the SPY breaks above $600, it could be a sign of a potential uptrend, while a break below $570 could be a sign of a potential downtrend. By taking control of your ETF portfolio and staying informed, you can make more informed investment decisions and achieve your long-term financial goals.
Last updated: March 2026
By the Investing Strategies Editorial Team
This content is for informational purposes only. Not financial advice—always do your own analysis before making investment decisions.