INVESTOR SERIES
ETF’s represent a robust $6 trillion industry and using ETFs as leveraged and inverse vehicles to bet on market losses and or to grab large returns during market rebounds is now part of everyday trading. In addition with the advent of single-equity ETFs they allow investors to take to single stock equity based short positions.
ETF Facts
An inverse ETF is set up so that its price rises (or falls) when the price of its target asset falls (or rises). This means the ETF performs inversely to the asset it’s tracking. For example, an inverse ETF may be based on the S&P 500 index. The ETF is designed to rise as the index falls in value.
Here are 5 “go to” inverse ETF’s for taking out your bearish bet against the equity markets
- ProShares Short S&P 500 (SH). The most popular inverse ETF, with nearly $3 billion in assets
- ProShares UltraShort S&P 500 (SDS)
- ProShares UltraPro Short S&P 500 (SPXU)
- ProShares Short Russell 2000 (RWM)
- ProShares UltraPro Short (SQQQ)
BONUS, conversely here are the top 4 ETF’s, with the highest 5 Year Return
- IWF, iShares Russell 1000 Growth ETF, 5 Year Return 102.29%
- MGK, Vanguard Mega Cap Growth ETF, 5 Year Return 101.55%
- QTEC, First Trust NASDAQ-100 Tech Sector Index Fund, 5 Year Return 60%
- SPYG, SPDR Portfolio S&P 500 Growth ETF, 5 Year Return 98.25%
