The fund managers try to identify companies with low earnings quality or aggressive accounting. [Short Bets Pay Off for Actively Managed Bear ETF]
Inverse, volatility and bear ETFs have had a tough 2012 with the S&P 500 up 16% year to date heading into Tuesday’s drop. Active Bear ETF was off 17.8% year to date, according to Morningstar. VXX, the volatility fund, had tumbled 75.7% before Tuesday’s bounce.
AdvisorShares Active Bear ETF
Full disclosure: Tom Lydon’s clients own VXX.