With major stock indexes hitting record highs, investors increasingly seek reliable ways to shield portfolios from market declines.
Cambria Tail Risk ETF Offers Downside Protection
The Cambria Tail Risk ETF (TAIL) delivers downside protection for equity portfolios using S&P 500 put options combined with U.S. Treasuries. Analysis shows TAIL outperforms inverse S&P 500 ETFs like SH and SDS on risk-adjusted returns when hedging a core stock position.
VXZ Provides Superior Risk-Adjusted Performance
Mid-term VIX futures ETF VXZ generates stronger risk-adjusted returns than TAIL. However, investors must actively monitor it due to the inherent complexities of VIX futures trading.
When TAIL Shines as a Safer Choice
TAIL stands out as a simpler, more dependable hedge during periods of steep contango in VIX futures. This approach balances ease of use with effective portfolio safeguarding.

