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Nevertheless, despite the falling earnings growth expectations, the energy sector is still expected to be the largest contributor to earnings growth for the S&P 500 as a whole. According to FactSet data, when excluding the energy sector, the blended earnings growth of the S&P 500 falls to 4.8% from 7.2%.
Traders who are wary of further weakness in the energy segment may turn to inverse ETF options to hedge against declines. For instance, the Direxion Daily Energy Bear 1x Shares (NYSEArca: ERYY) takes the -1x or -100% daily inverse performance of the Energy Select Sector Index. The ProShares Short Oil & Gas (NYSEArca: DDG) tries to reflect the inverse or -100% daily performance of the Dow Jones U.S. Oil & Gas Index.
For the risk-tolerant or more aggressive trader, the UltraShort Oil & Gas ProShares (NYSEArca: DUG) takes two times the inverse, or -200%, daily performance of the Dow Jones U.S. Oil & Gas Index, and the Direxion Daily Energy Bear 3X Shares (NYSEArca: ERY) reflects three times the inverse or -300% daily performance of the energy select sector index
For more information on the energy sector, visit our energy category.