Go Short Amid Coronavirus Volatility with these 5 ETFs

Last Friday, the Dow Jones Industrial Average plummeted by 600 points amid investor fears of the coronavirus outbreak having a negative impact on global economies. It was the largest sell-off since August, which left most investors sick, except short sellers.

“There’s fear going into the weekend,” said Ilya Feygin, senior strategist at WallachBeth Capital. “The theme coming into this year was the Fed and Trump are going to bail us out of any problems, but the virus is something neither one can do anything about. That’s a reason to become more fearful.”

Traders looking for an opportunity to go short on a particular index can look to these ETFs for opportunities:

1. ProShares UltraPro Short S&P500 (NYSEArca: SPXU): seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the S&P 500® Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the fund’s investment objective. The index is a measure of large-cap U.S. stock market performance.
2. ProShares UltraPro Short QQQ (NasdaqGM: SQQQ): seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the NASDAQ-100 Index®. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the fund’s investment objective. The index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.
3. ProShares UltraPro Short Dow30 (NYSEArca: SDOW): seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the Dow Jones Industrial Average® Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the fund’s investment objective. The index is a price-weighted index and includes 30 large-cap, “blue-chip” U.S. stocks, excluding utility and transportation companies.
4. ProShares UltraPro Short MidCap400 (NYSEArca: SMDD): seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the S&P MidCap 400® Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the fund’s investment objective. The index is a measure of mid-size company U.S. stock market performance.
5. ProShares UltraPro Short Russell2000 (NYSEArca: SRTY): seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the Russell 2000® Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the fund’s investment objective. The index is a measure of small-cap U.S. stock market performance.

For more market trends, visit ETF Trends.