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PSQ

As the ETF universe has expanded by leaps and bounds in recent years, investors now have tools at their disposal to accomplish almost every objective. From plain vanilla stock and bond indexes to hyper-targeted regional and sector funds, there are ETFs to bet on just about every asset class. And there are also a number of ETFs that can be used to bet against certain asset asset classes, which can be powerful tools for turning a profit in the types of environments that generally bring a sea of red ink to portfolio statements. Inverse ETFs, also known as short ETFs, have become extremely popular for a wide variety of objectives, including as hedging tools and vehicles for speculating on declines in value [see Free Report: How To Pick The Right ETF Every Time].

Short ETFs 101

Short or inverse ETFs generally seek to deliver results that correspond to the inverse, or -100%, of the movement in a specified index over a given period of time. The last part of that objective is critically important to understanding the risk profile offered by these products; inverse ETFs strive to deliver the target multiple (i.e., -100%) over a specified period of time, which is generally a single day. When held for longer periods of time, inverse ETFs will not always deliver returns that correspond to the opposite of the underlying index over that period of time.  [click to continue…]

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With some 3,700 companies, the NASDAQ has more trading volume than any other stock exchange in the world. The NASDAQ 100 is one of the world’s most widely-followed indexes, measuring the performance of 100 of the largest domestic and international nonfinancial companies listed on the NASDAQ Stock Market. As the ETF industry has boomed, billions of dollars have flowed into funds offering exposure to this benchmark, as many investors have made the NASDAQ a core portfolio holding. [click to continue…]

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The Definitive Inverse ETF Guide: Short/Bear ETFs 101

by on November 5, 2009 | Updated June 24, 2010

As the stock market continues to rise, seemingly running ahead of fundamentals, more and more investors are becoming concerned that the stocks are becoming overvalued, and that a downward correction may be just around the corner. While safe haven investments such as the U.S. dollar and gold are popular picks for investors looking to profit [...]

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In the week during which the Obama administration will unveil details surrounding its plan to revamp the regulation of the U.S. financial sector, calls for increased oversight of the ETF industry are picking up steam as well. Scott Burns, director of ETF Analysis at Morningstar, recently laid out a case for increased regulatory requirements for ETFs [...]

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