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.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.