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Bearish Investors Get Leveraged ETFs
ProShare Advisors LLC, part of ProFunds Group, listed eight index-linked
Exchange-Traded Funds (ETFs)
on the American Stock Exchange. The first four ETFs provide the daily opposite return of the Nasdaq 100, S&P 500,
S&P MidCap 400, and the Dow Jones Industrial Average. So buying one should yield the same performance as selling
short its corresponding index.
- Short QQQ ProShares (PSQ)
- Short S&P500 ProShares (SH)
- Short MidCap400 ProShares (MYY)
- Short Dow30 ProShares (DOG)
The second four ETFs provide twice the daily opposite return of the indices.
- UltraShort QQQ ProShares (QID)
- UltraShort S&P500 ProShares (SDS)
- UltraShort MidCap400 ProShares (MZZ)
- UltraShort Dow30 ProShares (DXD)
ProShare is ramping up its
short offerings
giving investors an option to bet against both sectors and indexes. Two sectors that people are shorting most in the
ETF world are:
- UltraShort Real Estate ProShares (SRS)
- UltraShort Financials ProShares (SKF)
Short ETFs benefit investors when the market turns South. The following
chart
shows the opposite correlations between the US stock market indices and their corresponding UltrShort ETFs.
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