Get info on Inverse Exchange Traded Funds (ETF) Investing & ETF Stocks.
Inverse ETF Investing
Inverse Exchange-Traded Fund From Wikipedia, the free encyclopedia:
An inverse exchange-traded fund is an exchange-traded fund (ETF), traded on a public stock market, which is designed to perform as the inverse of whatever index or benchmark it is designed to track. These funds work by using short selling, trading derivatives such as futures contracts, and other leveraged investment techniques.
By providing performance opposite to their benchmark, inverse ETFs give approximately the same results as would short selling the stocks in the index. An inverse S&P 500 ETF, for example, seeks a daily percentage movement opposite that of the S&P. If the S&P 500 rises by 1%, the inverse ETF is designed to fall by 1%; and if the S&P falls by 1%, the inverse ETF should rise by 1%. Because their value rises in a declining market environment, they are popular investments in bear markets.
Short sales have the potential to expose an investor to unlimited losses, whether or not the sale involves a stock or ETF. An inverse ETF, on the other hand, provides many of the same benefits as shorting, yet it exposes an investor only to the loss of the purchase price. Another advantage of inverse ETFs is that they may be held in IRA accounts, while short sales are not permitted in these accounts.
Disclaimer: This is for up to date information on Exchange Traded Funds and is only for informational purposes. Investing is risky and all precautions must be used at all times.
List of National and International Exchange Traded Funds
Ultra Oil & Gas ProShares (NYSEArca: DIG). If you believe those prices are going to continue to go up and you want to maximize your exposure, this is one way to do it. Just be sure you know how leveraged ETFs work before you leap. [Our Guide to ...
The ProShares UltraShort DJ-UBS Commodity ETF (NYSEArca: CMD - News ) is ahead by 4.27% this year. CMD aims for two times daily inverse performance to a basket of 19 commodities. Sector components within the underlying index include agriculture ...
After turning in some disappointing totals in January, the ETF industry is back to its growing ways after gaining $20 billion in new assets during February. Exchange traded products now hold $765 billion in assets under management, up from $745 ...
SmarTrend identified an Uptrend for ProShares Ultra Technology ( NYSE:ROM ) on February 17, 2010 at $48.02. In approximately 3 weeks, ProShares Ultra Technology has returned 7.2% as of today's recent price of $51.48. ProShares Ultra Technology is ...
SmarTrend, the proprietary pattern recognition system, has made available a free sample copy of our premium research report on ( AMEX:QLD ) at http://www.mysmartrend.com/research/ SmarTrend, our proprietary pattern recognition system, called an ...
The ProShares UltraShort 20+ Year Treasury ETF (Public, NYSE:TBT) is an interesting prospect for those that expect higher inflation and higher interest rates. TBT is an ETF that is held by 5 gurus tracked by Gurufocus. This article argues that higher ...
The world of exchange traded funds (ETFs) is getting a little bit bigger and a little more interesting. Van Eck plans to offer two first-of-their-kind fixed-income ETFs, while ProShares is also gearing up to launch regional banking and international ...
Mar 04, 2010 (SmarTrend(R) Spotlight via COMTEX) -- SmarTrend identified an Uptrend for ProShares Ultra QQQ (AMEX:QLD) on February 17, 2010 at $55.60. In approximately 2 weeks, ProShares Ultra QQQ has returned 5.3% as of today's recent price of $58 ...
Mar 03, 2010 (SmarTrend(R) Spotlight via COMTEX) -- SmarTrend identified an Uptrend for ProShares Ultra Real Estate (NYSE:URE) on February 18, 2010 at $6.55. In approximately 2 weeks, ProShares Ultra Real Estate has returned 5.6% as of today's recent ...
ProShares , a leading provider of inverse and leveraged ETFs, has filed for approval on seven addition ETFs, including four “ultra” international ETFs and three products focusing on a popular regional bank index. The international ETFs complement ...
