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24 Sep
Posted by Sensei @ 4:47 pm on Monday, September 24th, 2007 in ETFs, Leveraged ETFs
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.
All of the inverse (short) funds, etfs, stock symbols have a counter part for going long.
If you wanted to make an investment that the Nasdaq 100 was going to go down you could do so buying PSQ. PSQ’s benchmark is the opposite of the QQQQ performance.
PSQ - Seeks daily investment results of 1x the inverse of the daily performance of the Nasdaq 100 (or market Symbol NDX.x).
SH - Seeks daily investment results of 1x the inverse of the daily performance of the S&P 500 (or market Symbol SPX.x).
MYY - Seeks daily investment results of 2x the inverse of the daily performance of the MidCap Index (or market Symbol MID.x).
DOG - Seeks daily investment results of 2x the inverse of the daily performance of the Dow 30 (or market Symbol INDU).
RWM - Seeks daily investment results of 2x the inverse of the daily performance of the Russell2000 (market symbol: RUT.x).
SBB - Seeks daily investment results of 2x the inverse of the daily performance of the SmallCap 600 (market symbol: SML.x).
2x Beta Inverse ETFs. Theoretically these investment vehicles produce twice the gain/loss of their benchmark. Its not always exact - speaking from experience.
QID - If you thought the Nasdaq 100 was going to go down, you would buy the symbol QID.
SDS - If you thought the S&p 500 was going to go down, you would buy the symbol SDS.
MZZ - If you thought the MidCap 400 was going down, you would buy the symbol MZZ.
DXD - If you thought the Dow 30 was going down, you would buy the symbol DXD.
TWM - If you thought the Russell 2000 was going down, you would buy TWM.
SDD - If you thought the Small Cap 600 was going down you would buy SDD
The following companies offer inverse mutual funds.
Russell 2000 Inverse Funds
RYSHX - Inverse Russell 2000 mutual fund
RYIRX - Inverse Russell 2000 2x mutual fund
Dow 30 Inverse Funds
RYCWX - Seeks daily investment results of 2x the inverse of the daily performance of the Dow 30 Index.
Nasdaq 100 Inverse Funds
RYAIX - Seeks daily investment results of 1x the inverse of the daily performance of the Nasdaq 100 Index.
RYVNX - Seeks daily investment results of 2x the inverse of the daily performance of the Nasdaq 100 Index.
S&P 500 Inverse Funds
RYURX - Seeks daily investment results of 1x the inverse of the daily performance of the S&P 500 Index.
RYTPX - Seeks daily investment results of 2x the inverse of the daily performance of the S&P 500 Index.
Inverse Russell 2000 Funds
SHPIX - Seeks daily investment results of 1x the inverse of the daily performance of the Russell 2000 Index.
UCPIX - Seeks daily investment results of 2x the inverse of the daily performance of the Russell 2000.
Inverse S&P 500 Funds
BRPIX - Seeks daily investment results of 1x the inverse of the daily performance of the S&P 500.
URPIX - Seeks daily investment results of 2x the inverse of the daily performance of the S&P 500.
Inverse Dow 30 Funds
UWPIX - Seeks daily investment results of 2x the inverse of the daily performance of the Dow 30.
Inverse Nasdaq 100 Funds
SOPIX - Seeks daily investment results of 1x the inverse of the daily performance of the Nasdaq 100.
USPIX - Seeks daily investment results of 2x the inverse of the daily performance of the Nasdaq 100.
DXQSX - Seeks daily investment results of 2.5x the inverse of the daily performance of the Nasdaq 100.
PSPSX - Seeks daily investment results of 1x the inverse of the daily performance of the S&P 500.
DXSSX - Seeks daily investment results of 2.5x the inverse of the daily performance of the S&P 500.
DXRSX - Seeks daily investment results of 2.5x the inverse of the daily performance of the Russell 2000.
Tags: dog, dxd, ETFs, Leveraged ETFs, myy, mzz, nasdaq_100, ndx, psq, QID, qqqq, rwm, ryaix, ryirx, ryshx, ryvnx, sbb, sdd, sds, sh, twm
3 Responses
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October 6th, 2007 at 11:10 am
1[...] The plethora of mutual funds that track the performance of the Russell 2000, some are 2x beta. I trade these almost [...]
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January 8th, 2008 at 9:57 pm
2[...] 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 [...]
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July 7th, 2008 at 2:26 pm
3[...] 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 [...]
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