Do you need market-neutral ETFs in your portfolio? Apr 23rd

All about Canadian investments. Learn the ins and outs and get the latest news.
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Do you need market-neutral ETFs in your portfolio?In August 2025, I wrote about a concept that started gaining traction among financial advisors: the 40-30-30 portfolio. This allocation emerged in the aftermath of the 2022 bear market, when rising inflation and aggressive interest-rate hikes caused both stocks and bonds to decline at the same time. That challenged the traditional balanced portfolio and pushed advisors to look for alternatives.

The idea is to reduce exposure to stocks and bonds and allocate a larger portion to alternative assets. Those alternatives can take many forms. Some investors turn to hard assets or digital stores of value like gold or cryptocurrencies. Others look at private markets, including private equity, private credit, and real estate. 

Then there is a third category that tends to get less attention but is increasingly accessible: hedge fund-like alternative or market-neutral strategies designed to generate returns with low correlation to traditional assets. 

Since early 2019, regulatory changes in Canada have expanded access to liquid alternatives in both mutual fund and ETF format…

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