May 27, 2008 at 1:00 am by Tom Lydon
The market’s performance in April soaked short exchange traded funds (ETFs), which highlights the caveats of these types of funds.
However, on a week such as the one we just had, the benefits can come into focus, too. Here’s hoping that in April, as short funds headed south while the markets went up, you stuck to your sell strategy and got out before too much damage was done.
If you’re looking to get back in to one of these, wait until they’re back above their trend lines before getting in, then tread carefully.
- ProShares Ultra Short Russell Mid-Cap Growth (SDK), lost 14.4% in April
- ProShares Ultra ShortQQQ (QID), lost 15% in April
- Rydex Inverse 2x Russell 2000 (RRZ), lost 8.3% in April
- Rydex Inverse 2x S&P 500 (RSW), lost 9.4% in April
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.
