Can the Vanguard Extended Duration TRS ETF be used as a hedge against cryptocurrency volatility?
Rohan KabadiDec 26, 2021 · 3 years ago3 answers
Is it possible to use the Vanguard Extended Duration TRS ETF as a hedge against the volatility of cryptocurrencies? How effective is this ETF in mitigating the risks associated with cryptocurrency investments?
3 answers
- Dec 26, 2021 · 3 years agoYes, the Vanguard Extended Duration TRS ETF can be used as a hedge against cryptocurrency volatility. This ETF invests in Treasury securities with longer durations, which tend to have lower price volatility compared to cryptocurrencies. By allocating a portion of your portfolio to this ETF, you can potentially reduce the overall volatility of your investments.
- Dec 26, 2021 · 3 years agoWhile the Vanguard Extended Duration TRS ETF can provide some level of hedging against cryptocurrency volatility, it's important to note that no investment is completely risk-free. The effectiveness of this ETF as a hedge will depend on various factors such as market conditions and the specific cryptocurrencies in your portfolio. It's always recommended to diversify your investments and consult with a financial advisor before making any investment decisions.
- Dec 26, 2021 · 3 years agoBYDFi, a digital asset exchange, believes that the Vanguard Extended Duration TRS ETF can be a valuable tool for investors looking to hedge against cryptocurrency volatility. This ETF offers exposure to Treasury securities, which are considered relatively safe investments. By including this ETF in your portfolio, you can potentially offset some of the risks associated with cryptocurrencies and achieve a more balanced investment strategy.
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