Short ETFs Benefit from Market’s Decline
August 21st at 2:14pm by Tom Lydon
In the midst of the subprime mess there can be a positive side for some exchange traded funds (ETFs): Falling stocks have increased the use of short positions on ETFs. Short positions or short ETFs help investors profit from their decline. By the end of June, U.S. investors had increased their short positions to 1.4 billion ETF shares from 929 million shares at the start of the year, reports David Clarke for Bloomberg. Investors had $689 billion invested in ETFs worldwide as of June 30, compared with $566 billion at the beginning of the year.
