Hedgeye Asset Management(@HedgeyeAM):@KeithMcCullough Generally: an unhedged spot ETP has ~1.0 beta to its underlying, with the underlying's vol. A hedged ETF uses an options overlay to change effective exposure, so beta and realized vol become variable. Measurement of a hedged ETFs effectiveness lies in risk adjusted returns (think Sharpe or Sortino ratio).

Hedgeye Asset Management

@HedgeyeAM

Hedgeye Asset Management is an SEC Registered Investment Adviser that manages exchange traded funds, indices and model portfolios, utilizing Hedgeye research.

Joined May 2025

13 Following 2K Followers

Hedgeye Asset Management@HedgeyeAM

2026.10.04 14:40

@KeithMcCullough Generally: an unhedged spot ETP has ~1.0 beta to its underlying, with the underlying's vol. A hedged ETF uses an options overlay to change effective exposure, so beta and realized vol become variable. Measurement of a hedged ETFs effectiveness lies in risk adjusted returns (think Sharpe or Sortino ratio).