Alternatives to Inverse ETFs...

Discussion in 'Trading' started by TheGoonior, Sep 8, 2011.

  1. I'm aware that inverse ETFs typically have poor long term performance vs. their underlying, so I'm looking for a substitute to achieve the same results.

    Because this account is a 401k (Fidelity), I cannot:
    1) Purchase puts.
    2) Trade spreads.
    3) Short the underlying.
    4) Purchase long calls or trade spreads (such as the VIX).
    5) Trade futures.

    I'd transfer it to IB if I could, but moving it isn't an option since I'm still employed with the company and plan to be for awhile.

    What are my alternatives?
    I'm assuming the non-leveraged inverses have better performance than their 2x/3x counterparts, but still suffer the same compounding issues.

    I use the Russell 2k, so the inverses are RWM and TWM (2x).
    Any suggestions on how to offset these issues?
    Thanks in advance.