I only do passive investment on index ETFs etc. I'm quite happy with that, but sometimes I want to hedge against specific asset classes in the mix.
For example, let's say I do want to keep buying emerging economy equity index ETF, but I'm very worried that China stocks are in a bubble. If I want to keep buying the ETF, but hedge against a very sharp drop in China stock specifically (something like a 20-30% drop, for example), what is the most cost effective way of doing it?
I looked into e-warrants, but I wasn't sure if this is will be a good way.