Great time to de-risk portfolios and look for alternatives, says Strategas’ Todd Sohn
On CNBC, Todd Sohn of Strategas Securities highlights how ETFs such as Cohen & Steers Real Estate Active ETF (CSRE) and Cohen & Steers Natural Resources Active ETF (CSNR) can help investors diversify and help hedge risk during a period of high beta in the market.
Disclosures
Definition of terms used in video:
Beta — A measure of how sensitive an asset is to market movements.
- High beta means the asset tends to move more than the market (e.g., +2% when the market is +1%).
- Used to describe risk, cyclicality, and factor exposure.
Hedge high beta — Reducing exposure to high‑beta assets (e.g., tech, semis, small caps) using shorts, options, or low‑beta substitutes to dampen portfolio volatility.
Semis — Industry shorthand for semiconductors — chipmakers, foundries, equipment manufacturers.
- “Move into the semis” = rotate into semiconductor equities.
High relative low beta — A comparison phrase meaning:
- High‑beta assets are outperforming low‑beta assets (or vice versa).
- Often used in factor or style‑rotation commentary.
Leveraged semiconductor activity — Trading or investing in semiconductor exposure using leverage (options, futures, levered ETFs) to amplify returns and volatility.
De‑risk portfolios — Reducing exposure to volatile or cyclical assets; increasing cash, Treasuries, low‑vol equities, or hedges to lower drawdown risk.
Hedge — A position designed to offset risk elsewhere in the portfolio (e.g., puts, inverse ETFs, long duration vs. equity risk).
Alternatives — Non‑traditional asset classes: private credit, private real estate, commodities, infrastructure, hedge funds, managed futures, etc.
Managed futures — Systematic trend‑following strategies using futures across asset classes (rates, FX, commodities, equities).
- Known for crisis alpha and low correlation to stocks/bonds.
Low‑vol equity — Equity strategies targeting stocks with historically lower volatility.
- Often defensive, stable‑earnings sectors.
High‑beta / high‑vol trade — A positioning style that seeks exposure to assets that move more than the market.
- Typically growth, tech, semis, small caps, cyclicals.
Return‑stacked bonds (RSBT) — A structure that layers (or “stacks”) multiple sources of return on the same dollar — e.g., core bonds plus a futures overlay (equity, managed futures, etc.).
- Goal: more diversified return per unit of capital.
Correlation — A statistical measure of how two assets move relative to each other.
- +1 = move together; –1 = move opposite; 0 = unrelated.
High vs. low beta performance — A style factor comparison showing whether risk‑on (high beta) or defensive (low beta) equities are leading.
- Often signals macro regime shifts.
Levered activity — Trading or investing using leverage to amplify exposure — margin, derivatives, levered ETFs, structured notes.
Anti‑beta — Strategies that benefit when high‑beta assets underperform.
- Examples: low‑vol, quality, defensive sectors, or explicit short‑beta overlays.
Equate S&P 500 — Usually shorthand for equal‑weight S&P 500 (vs. cap‑weight).
- Reduces mega‑cap concentration; increases mid‑cap exposure.
Metric‑wise — A phrase meaning “in terms of the metrics” — used when comparing valuation, performance, volatility, or factor characteristics.
This material is for informational purposes and reflects prevailing conditions and our judgment as of the date of this material, which are subject to change. This material is not being provided in a fiduciary capacity and is not intended to recommend any investment policy or investment strategy or take into account the specific objectives or circumstances of any investor. We consider the information in this material to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of appropriateness for investment. Please consult with your investment, tax or legal professional regarding your individual circumstances prior to investing.
Cohen & Steers Capital Management, Inc. (Cohen & Steers) is a registered investment advisory firm that provides investment management services to corporate retirement, public and union retirement plans, endowments, foundations and mutual funds.
Investing involves risks, including the potential loss of principal. There are also some specific risks to the two funds mentioned. See the prospectus for all risks:
CSNR - The Fund is subject to special risk considerations and may not be appropriate for all investors. Investing in specific sectors increases its vulnerability to any single economic, political, or regulatory developments, which will have a greater impact on the Fund’s return. An investment in the natural resource equities involves risks that differ from a similar investment in equity securities, such as common stock, of a corporation. There are special risks associated with natural resources investments, this means that the fund is more vulnerable to the price movements that particularly impact one or more of the various industries and sub industries within the natural resources sector. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds.
CSRE - The Fund is subject to special risk considerations similar to those associated with the direct ownership of real estate due to its policy of concentration in the securities of real estate companies. Real estate valuations may be subject to factors such as changing general and local economic, financial, competitive and environmental conditions.
Foreside Fund Services, LLC, is the Fund's distributor. Cohen & Steers Capital Management, Inc., is the investment advisor to the Fund. Foreside Fund Services, LLC and Cohen & Steers Capital Management, Inc., are not affiliated.
For more information about the funds, including risks, performance and holdings please visit: https://www.cohenandsteers.com/funds/real-estate-active-etf/?symbol=CSRE#overview & https://www.cohenandsteers.com/funds/natural-resources-active-etf/?symbol=CSNR#overview