Are you feeling a bit bearish on your exchange traded fund (ETF) bets because of the market turmoil? You’re not alone.
Some of the strongest funds in trading yesterday were the shorts, including ProShares UltraShort Semiconductors (SSG), ProShares UltraShort Financials (SKF) and ProShares UltraShort FTSE/Xinhua China 25 (FXP).
Indie Research points out that this is not the first time the mood has soured on Wall Street, but the difference this time around is that investors can now make broad, bearish bets with ETFs. One can sell short any of the ETFs they want, or investors can buy shares of any of the short or ultrashort funds available.
Short ETFs:
- UltraShort QQQ ProShares (QID), up 4.7% year-to-date
- PowerShares DB US Dollar Index Bearish (UDN), up 4.8% year-to-date
UltraShort ETFs:
- UltraShort Russell 2000 ProShares (TWM), up 1.4% year-to-date
- UltraShort S&P 500 ProShares (SDS), up 11.1% year-to-date
- UltraShort Financials ProShares (SKF), up 24.9% year-to-date
Rydex is the latest provider to get into the inverse game, with the launch of some new ETFs meant to short the market.
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.