Newbie question about INVERSE ETFs

B

bhairava

While reading a thread on this forum, I came across a term--
inverse ETFs-- which I didn't know.

Could anyone briefly define it?
Are there any good examples of ETFs that illustrate this?

Thanks alot.

And, thanks alot to ET members in general, for taking the time to answer members' questions. Good luck trading.

(ET has enabled me to quickly choose which instrument to trade, thereby concentrating on the TA and money mgmnt techniques to be able to day trade C, and later an index, in the near future.

But the current environment demands that one take action to preserve capital--and I am looking at other instruments to accom-
plish this. This is the reason I ask a, relatively, stupid question.)
 
Quote from bhairava:

While reading a thread on this forum, I came across a term, which I didn't know.

Could anyone briefly define it?

Are there any good examples of ETFs that illustrate this?

Thanks alot.

And thanks to ET members in general, for taking the time to answer
More...

There are shitloads of them. May be a little to late to the bear party. Wait for the next bear spike sucker rally. DXD is a personal favorite of mine and has a nice 1-3 point range in this bi-polar market.


Short & UltraShort MarketCap ETFs:
ETF Name Ticker Benchmark Index
Short QQQ PSQ Nasdaq-100
Short Dow 30 DOG DJIA
Short S&P 500 SH S&P 500
Short MidCap400 MYY S&P MidCap 400
Short SmallCap600 SBB S&P SmallCap 600
Short Russell2000 RWM Russell 2000
UltraShort QQQ QID Nasdaq-100
UltraShort Dow 30 DXD DJIA
UltraShort S&P 500 SDS S&P 500
UltraShort MidCap400 MZZ S&P MidCap 400
UltraShort SmallCap600 SDD S&P SmallCap 600
UltraShort Russell2000 TWM Russell 2000

UltraShort Style:
ETF Name Ticker Benchmark Index
UltraShort Russell1000 Value SJF Russell 1000 Value
UltraShort Russell1000 Growth SFK Russell 1000 Growth
UltraShort Russell MidCap Value SJL Russell MidCap Value
UltraShort Russell MidCap Growth SDK Russell MidCap Growth
UltraShort Russell2000 Value SJH Russell 2000 Value
UltraShort Russell2000 Growth SKK Russell 2000 Growth

UltraShort Sector:
ETF Name Ticker Benchmark Index
UltraShort Basic Materials SMN Dow Jones U.S. Basic Materials
UltraShort Consumer Goods SZK Dow Jones U.S. Consumer Goods
UltraShort Consumer Services SCC Dow Jones U.S. Consumer Services
UltraShort Financials SKF Dow Jones U.S. Financials
UltraShort Health Care RXD Dow Jones U.S. Health Care
UltraShort Industrials SIJ Dow Jones U.S. Industrials
UltraShort Real Estate SRS Dow Jones U.S. Real Estate
UltraShort Semiconductors SSG Dow Jones U.S. Semiconductors
UltraShort Oil & Gas DUG Dow Jones U.S. Oil & Gas
UltraShort Technology REW Dow Jones U.S. Technology
UltraShort Utilities SDP Dow Jones U.S. Utilities

Short & UltraShort International:
ETF Name Ticker Benchmark Index
Short MSCI Emerging Markets EUM MSCI Emerging Markets Index
Short MSCI EAFE EFZ MSCI EAFE Index
UltraShort MSCI EAFE EFU MSCI EAFE Index
UltraShort MSCI Emerging Markets EEV MSCI Emerging Markets index
UltraShort MSCI Japan EWV MSCI Japan Index
UltraShort FTSE/Xinhua China 25 FXP FTSE/Xinhua China 25 Index

And here are some inverse Gold ETNs (Exchange Traded Notes):

* DB Gold Double Short ETN (DZZ)
* DB Gold Short ETN (DGZ)
 
Quote from bhairava:

While reading a thread on this forum, I came across a term--
inverse ETFs-- which I didn't know.

Could anyone briefly define it?
Are there any good examples of ETFs that illustrate this?

Thanks alot.

And, thanks alot to ET members in general, for taking the time to answer members' questions. Good luck trading.

(ET has enabled me to quickly choose which instrument to trade, thereby concentrating on the TA and money mgmnt techniques to be able to day trade C, and later an index, in the near future.

But the current environment demands that one take action to preserve capital--and I am looking at other instruments to accom-
plish this. This is the reason I ask a, relatively, stupid question.)
More...

No stupid questions BH.

Some sources for you.

proshares.com
etfconnect.com

type "stock is etf" into a stockfetcher.com free scan

The march 2008 Futures magazine has basic etf info along with breakdown of bigger vol etf's near the back.

Inverse etf move in price opposite to underlying. So a bear etf will move UP when the market its predicated on moves DOWN.

Be careful with etf. Some are fairly illiquid and they have different cost structure. But they are exploding in quantity and utility and so expect them to become more popular as time moves on.

HTH
 
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