The exchange-traded fund industry is trying to make pair trading strategies more accessible to average investors.
Michael Venuto of Tidal Financial Group last month placed an order for eight ETFs with two stocks: buy one stock and sell the other.
“They should be out in about two or three months,” Venuto, the company's chief investment officer and co-founder, said on CNBC's “Halftime Report” this week.
These new ETFs aim to simplify long and short trades by bundling both positions into one product and eliminating the need for separate trades, according to U.S. Securities and Exchange Commission filings.
Todd Rosenbluth of VettaFi noted the convenience that ETFs provide investors.
“Instead of having to short something yourself, the ETF will do it for you. So there's a convenience factor there,” the company's head of research said on CNBC's “ETF Edge” this week.
This simplified approach can appeal to investors looking for easy access to arbitrage market positions.
Rosenbluth also noted the potential popularity of these ETFs.
“I think ETF adoption will continue, even if we have some of these niche products sitting alongside the Vanguard 500 in the portfolio,” Rosenbluth said.
Correction: This article has been updated to reflect a description of the SEC filings for two-stock ETFs.
