This month, Standard & Poor’s introduced the S&P 500 Inverse Index – does this mean exchange traded funds (ETFs) will follow?
The index provides the inverse performance of the widely used stock benchmark, reports Barry Burr for Pensions And Investments. For U.S. investors, the inverse index will serve as a benchmark to measure short positions in equities.
For investors in Europe and Asia, where many legal limits don’t allow index shorting not based on an existing shorting index, the index inverse can serve as a basis for creating investment products such as ETFs. The S&P Inverse index return will be priced daily.
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