“If an ideal short entry develops, I would look to sell short KBE by buying FAZ, which has plenty of liquidity with an average of more than 7 million shared traded per day,” said Wagner.
FAZ tracks the Russell 1000 Financial Services Index, which is not KBE’s underlying index. Other inverse bank ETFs include the double-leveraged UltraShort Financials ProShares (NYSEArca: SKF) and the non-leveraged Short Financials ProShares (NYSEArca: SEF).
Direxion Daily Financial Bear Shares
Table Courtesy: Direxion
ETF Trends editorial team contributed to this post.