The inverse ETF has become a popular way to hedge, particularly with the 2x and 3x leveraged inverse ETF’s offered by ProShares and Direxion. These inverse ETFs offer investors a way to hedge their portfolios by going short without the need for using options or shorting by borrowing shares in a margin account. Another advantage is being able to diversify on the short side within an entire sector such as financials and energy, allowing you to hone in on the weakest areas of the market while maintaining long positions in area of strength. Never before has the retail investor been given so many options to protect themselves in deteriorating markets.
Below is a list of the most popular leveraged inverse ETFs from PowerShares and Direxion. Keep in mind this entire list is made of INVERSE ETF’s .. so they will move up when that particular market moves down. Most are offered by ProShares unless noted. The average number of shares traded per day is as of Dec 15th 2008. On a final note, be careful with these.. they can move quickly!
| Leveraged Inverse ETF |
Ticker |
Avg Shares Traded/Day* |
|
Index
|
| QQQQ 2x |
QID |
45441K |
| Dow 30 2x |
DXD |
16782K |
| SP 500 2x |
SDS |
66035K |
| MidCap 400 2x |
MZZ |
1190K |
| Small Cap 600 2x |
SDD |
70K |
| Russell 2000 2x |
TWM |
9038K |
| Large Cap Bear 3x (Direxion) |
BGZ |
2728K |
| Small Cap Bear 3x (Direxion) |
TZA |
1522K |
|
Sectors
|
| Basic Materials 2x |
SMN |
4252K |
| Gold 2x |
GLL |
9K |
| Oil & Gas 2x |
DUG |
21287K |
| Crude Oil 2x |
SCO |
55K |
| Energy 3x (Direxion) |
ERY |
377K |
| Industrials 2x |
SIJ |
79K |
| Consumer Goods 2x |
SZK |
51K |
| Consumer Services 2x |
SCC |
172K |
| Real Estate 2x |
SRS |
8430K |
| Financials 2x |
SKF |
25638 |
| Financials 3x (Direxion) |
FAZ |
1900K |
| Semiconductors 2x |
SSG |
66K |
| Utilities 2x |
SDP |
34K |
| Technology 2x |
REW |
111K |
|
Fixed Income
|
| Lehman 7-10 YR Treasury 2x |
PST |
62K |
| Lehman 20+ YR Treasury 2x |
TBT |
997K |
|
Currency
|
| Euro/US 2x |
EUO |
25K |
| Yen/US 2x |
YCS |
3.5K |
* As of December 15th, 2008
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