## Inverse ETFs, Inverse Mutual Funds, and Inverse ETNs

## So you’re tired of always being long and want to short the market?

How do you do it without borrowing shares? Easily. You buy the appropriate vehicles long. Which is actually a bet that the market will go down. Let me explain. There are investment options that you can buy long that represent an investment that their benchmark will go down. Its the same results as shorting except with traditional shorting you are borrowing shares that you don’t own.

There are 1x, 1.5x, and 2x leveraged ETFs, Funds, or ETNs that you can use to trade. I only trade 2x leveraged funds/etfs.

# Inverse Market ETFs

### 1x Beta Inverse ETFs

1. PSQ – 1x inverse the Nasdaq 100.

2. SH – 1x inverse the S&P 500.

3. MYY – 1x inverse the MidCap Index.

4. DOG – 1x inverse the Dow 30.

5. RWM – 1x inverse the Russell2000.

6. SBB – 1x inverse the SmallCap 600.

### 2x Beta Double Inverse ETFs

Theoretically these investment vehicles produce twice the gain/loss of their benchmark. The price between the index and the etf does not always equal a double – speaking from experience.

1. **QID** – 2x double inverse the Nasdaq 100 ie this is a **short the Nasdaq ETF**.

2. **SDS** – 2x double inverse the S&p 500 ie this is a **short the S&P 500 ETF**.

3. **MZZ** – 2x double inverse the MidCap 400.

4. **DXD** – 2x double inverse the Dow 30..

5. **TWM** – 2x double inverse the TWM ie this is a **short the Russell 2000 ETF**.

6. **SDD** – 2x double inverse the SDD

## Inverse Mutual Funds

The following companies offer inverse mutual funds.

#### Rydex Investments

1. RYSHX – 1x inverse Russell 2000 mutual fund

2. RYIRX – 2x inverse Russell 2000 mutual fund

3. RYCWX – 2x inverse the Dow 30 Index.

4. RYAIX – 1x inverse the Nasdaq 100 Index.

5. RYVNX – 2x inverse the Nasdaq 100 Index.

6. RYURX – 1x inverse the S&P 500 Index.

7. RYTPX – 2x inverse the S&P 500 Index.

#### ProFunds

1. SHPIX – 1x inverse the Russell 2000 Index.

2. UCPIX – 2x inverse the Russell 2000.

3. BRPIX – 1x inverse the S&P 500.

4. URPIX – 2x inverse the S&P 500.

5. UWPIX – 2x inverse the Dow 30.

6. SOPIX – 1x inverse the Nasdaq 100.

7. USPIX – 2x inverse the Nasdaq 100.

#### Direxion Funds

1. DXQSX – 2.5x inverse the Nasdaq 100.

2. PSPSX – 1x inverse the S&P 500.

3. DXSSX – 2.5x inverse the S&P 500.

4. DXRSX – 2.5x inverse the Russell 2000.

#### Inverse Sector ETFs

SKF – 2x Inverse Financials – essentially this is the leveraged opposite version of XLF

SRS – 2x Inverse Real Estate – essentially this is the leveraged opposite version of IYR

REW – 2x Inverse Semiconductors – essentially this is the leveraged opposite version of SMH

SMN – 2x Inverse Basic Materials Index – essentially this is the leveraged opposite version of XLB

FXP – 2x Inverse China 30

EFU – 2x Inverse MSCI Index

SDP – 2x Inverse Utilities

SZK – 2x Inverse Consumer Goods

SCC – 2x Inverse Consumer Services

RXD – 2x Inverse Health Care

SIJ – 2x Inverse Industrials

#### Inverse Commodities ETNs

DGZ – 1x Inverse Gold index – opposite of GLD

DZZ – 2x Double inverse Gold index – essentially this is the leveraged opposite version of GLD

DDP – 1x Inverse Deutsche Bank Commodity Index

DEE – 2x Double inverse Deutsche Bank Liquid Commodity Total Return Index.

DTO – 2x inverse Deutsche Bank Liquid Commodity index – Optimum Yield Oil Excess Return

BOM – 2x inverse Deutsche Bank Liquid Commodity index – Optimum Yield Industrial Metals Excess Return

#### Inverse Currency ETNs

UDN – Double inverse US dollar – if you want to short the US Dollar

DRR – Van Eck Double inverse Euro

EUO – 2x inverse Euro ETN

[...] The plethora of mutual funds that track the performance of the Russell 2000, some are 2x beta. I trade these almost [...]

[...] vehicles, considering we may just have entered a fresh bear market it might be a good idea to familiarize yourself with them. Bookmark: Some other posts you might find interestingNovember 7, 2005 — Sold Too [...]

[...] the inverse ETF – Too big to answer here, but some examples of inverse ETF’s have been in answered in this post. If you want to go short sectors or countries, you can use SKF [...]

Is BearX a reverse ETF???

I liked your lists, thanks.

Your page goes very slow up and down, try to give the size of

your images on the page, so the computer does not have to

figure it out.

Hi all:

Could anyone please tell me where I can buy these Inverse ETFs… What are minimum lot size? TIA

JJ

Any lot size. You can buy one share and you can buy them at any broker.

I like your list, thanks for posting.

One good advise that some of you might have known already but might find useful for others is you need to do your research before making your commitment. I also suggest not to put all of your money in one basket. Before you start, make sure you have enough money to support and continue what you've started. If you're not ready, just wait.

If you need more go visit this website: <a href=”http://whisperonwallstreet.com”>http://wh…

Check out the daily picks and some interesting facts and don't forget to signup for advice.

Interesting site.

You say, “I only trade 2x leveraged funds/etfs.”

Why is that, do you think that's a way to hold down your expenses ? What's the longest you've held one of these short the market etf's? Do you wait for a big down day and sell before the close?

I have the same sense that expressed in your July 6, 2009 post that, “Short signals developing on everything that didnâ€™t have them as of last week.” I just don't know how to take advantage of this.

Steve,

-At the time of this posting I said I only trade 2x funds/etfs. However, I do trade 3x etf's as well since their introduction came after this post.

-The reason why I trade them is because of the added juice/leverage compared to 1x beta index trading vehicles.

I've been trading Rydex funds since their inception which is around 2000-2001 I can't remember exactly. Way before the 2x etf's from ProShares came about.

-I've been building different market timing models (systems) since the same time I started trading Rydex funds. Rydex has no fees for trades, but the catch is that you have limited trading windows of 10:30 and 3:55. So if the market makes a big break at 1PM and you want to sell

you have to eat the loss and wait until 3:55 which then gets filled at 4pm. However, if you are swinging for the big long trends, these time restrictions don't really matter, but in shorter swings they matter. You have to have great timing, and that is something I am always working on.

-When I made that post on July 6th, it was basically saying I'm seeing a turn in my signals. The signals I'm always working on. I don't really post about them that often, I just post my trades.

***The ETFs/Funds are not the best thing to trade, but I don't have experience with futures, which are a better vehicle to trade these indexes. The reason futs are better are because these leveraged etfs/funds have a decay factor.

Thanks for the response.

I'm going to review your archives and start following your posts. (Currently I'm parked in Ginnie Maes so, obviously, I'm not much of a trader. However, having missed participating in this last rally I feel like I have to come up with some investment strategy other than buying and holding onto mutual funds.)

I am new to this business. Money and experience in real estate development. Have sincere feelings about the banking and real estate sectors. Where do I learn to capitolize?

The IYR is “the real estate” 1x beta etf.

The banking 1x etf is a bank etf, but the XLF is the main financials etf.

I can only speak about technicals as that is what I use to make most of my decisions. If you want to learn technical analysis, I would start with some books.

TA will help you learn when to buy and sell at optimum times, and its not a guarantee to work. Some people hate it.

The IYR is “the real estate” 1x beta etf.

The banking 1x etf is a bank etf, but the XLF is the main financials etf.

I can only speak about technicals as that is what I use to make most of my decisions. If you want to learn technical analysis, I would start with some books.

TA will help you learn when to buy and sell at optimum times, and its not a guarantee to work. Some people hate it.

I didn't have a problem, may be your internet connection?

What do you mean by decay factor?

Im trying to locate a list of Indexes, to be more specific I am looking for the Long and short version of the same Index. Can someone help me locate a site or link. Thank you. Rus

Another spin on the 1x inverse etf is HDGE

Interesting list of unusual funds.

Why can’t they trade the nasdaq instead of the nas-100?