Image Source: Unsplash

Stocks struggled in August as interest rates rose rapidly. The Simplify Interest Rate Hedge ETF (PFIX - Free Report), which seeks to hedge against a sharp increase in long-term interest rates, gained more than 13% last month. The product also seeks benefit from market stress when fixed income volatility increases.

Some ETFs that use options to hedge against market volatility and pay juicy dividends have been quite popular with investors since last year. The JPMorgan Equity Premium Income ETF (JEPI - Free Report) is the largest actively managed ETF now.

The Simplify Volatility Premium ETF (SVOL - Free Report) currently has a distribution yield of 16% and has outperformed the S&P 500 index (SPY - Free Report) and all other covered call ETFs since its inception.

Managed futures strategies, also known as CTAs (commodity trading advisors), seek to replicate the trades of market trend-following quant hedge funds. These ETFs, including the Simplify Managed Futures Strategy ETF (CTA - Free Report), shined last year, which was brutal for almost all major asset classes. When do these strategies work best?

The Simplify Volt RoboCar Disruption and Tech ETF (VCAR - Free Report), is changing its strategy to benefit from Tesla's (TSLA - Free Report) big swings. According to Bloomberg, it will increase its exposure to the stock when on the upswing, and trim it when the momentum is downward.

We also discuss the role of alternative ETFs in a portfolio.

Running Length: 00:27:39

More By This Author:

The New ETF That Protects Against All Market Losses
3 ETFs To Invest Like Warren Buffett
QQQ Vs. RSP : Which Is The Better ETF Investment Now?