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Can the Vanguard Extended Duration TRS ETF be used as a hedge against cryptocurrency volatility?

avatarMustafa AllamNov 24, 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?

Can the Vanguard Extended Duration TRS ETF be used as a hedge against cryptocurrency volatility?

3 answers

  • avatarNov 24, 2021 · 3 years ago
    Yes, 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.
  • avatarNov 24, 2021 · 3 years ago
    While 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.
  • avatarNov 24, 2021 · 3 years ago
    BYDFi, 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.