Q: I'm anticipating a short term market correction. What Canadian listed ETF would you recommend to for an inverse or short position on the TSX as a hedge again a market downturn.
5i Research Answer:
CNDI is one TSX inverse ETF; it is fairly small. Generally we prefer just more cash as a hedge. It earns a bit, doesn't have a fee and doesn't go down if the hedge call is wrong. There are also leveraged ETFs which we do not recommend. Simply shorting XIC is another option as a Canadian hedge and likely preferred over an illiquid ETF, assuming one is comfortable with shorting.