Internet2k4

Will 2008 Be the Year of the Quant ETF?

I noticed that several notable quant commentators in Seeking Alpha went silent last fall, and couldn't help suspecting that their software hadn't handled the current situation very well. For me, the big development in 2007 was not bond ETFs but the release of double-long / short products that are not perfect but do in fact significantly "juice" index exposure, limit downside risk, pay interest, have reasonable expense ratios given the price movement, and give those of us not glued to monitors a standing hedge against falling markets. My guess is there is a very good strategy to adjust double-short ETF exposure based on the VIX volatility trend, but I'll have to keep a damp thumb in the wind and wait for somebody smarter to figure it out.