The Inverse ETF
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10:29:21 pm on December 14, 2008

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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Comments  

sure would be interested in an inverse of the natural gas index,.i.e., excluding crude oil

 

What are some currency inverse ETF’S?

 

What are some inverse currency ETF’S?

 
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