Inverse Gold ETF: Does it Exist?
June 26th at 7:51am by Tom Lydon
Is there an exchange traded fund (ETF) or fund that tracks the inverse of gold? Inverse ETFs allow investors to short an index, a sector or a specific category of stocks. An example of a shorting type of fund family is the ProShares Short and UltraShort ETFs. An inverse ETF allows investors without a margin account, such as retirement accounts, to take a bearish or short position, according to Asif Suria of SINLetter.com.
While there is no ETF or fund that tracks the inverse of gold, Suria suggests there are ways to achieve the same result. One can invest in an asset class that is uncorrelated to gold, which traditionally goes up when gold goes down. Another option is to invest in the ProShares Ultra Short Basic Materials (SMN), which contains four gold mining companies and other holdings correlated to gold. Could an inverse gold ETF be in the pipeline?
