DOUBLE inverse ETFs

Discussion in 'ETFs' started by dac8555, Jul 13, 2006.

  1. dac8555


    Here are the tickers for all the recent ProShares launches (corrected from earlier version, based on the AMEX site: press release 1, press release 2):

    1x Short the NASDAQ-100 (PSQ)
    1x Short the S&P 500 (SH)
    1x Short the S&P MidCap (MYY)
    1x Short the Dow Jones Industrial Average (DOG)

    2x Long the NASDAQ-100 (QLD)
    2x Long the S&P 500 (SSO)
    2x Long the S&P MidCap (MVV)
    2x Long the Dow Jones Industrial Average (DDM)

    2x Short the NASDAQ-100 (QID)
    2x Short the S&P 500 (SDS)
    2x Short the S&P MidCap (MZZ)
    2x Short the Dow Jones Industrial Average (DXD

    this is REALLY cool. I am a bear for now...i love the idea of buying a single product, that will double the performance of the indices (one way or another) without having to use up large protions of my capital.

    I for one am all over the SDS and DXD...they are going on my permanent watch list!!
  2. For Inverse Mutual funds

    Direxion Funds Nasdaq 100 Bear 2.5x is my favorite....It's been a great place to be, but I'm not sure when this slide will end and how much room is left in this correction......I'm still long defensive equities and have a large percentage of the portfolio in this fund and some other Direxion short funds...

    The 2.5x means you are taking a 2.5:1 ratio of the move.....It was up 5.24% yesterday on a day when the QQQQ was down 1.89%....not really sure how that works, but they short the QQQQ and use a put option strategy and maybe futures.....Not all that familiar with it, but I know it's a leveraged short fund on the Nasdaq 100....

    I find this to give me the best return and expenses are low.....This may be what you are looking for if you want a leveraged short fund

    You can locate this @


    This is the chart from yesterday vs the QQQQ and its up another 5% today....They have many other short funds....Dollar, Emerging Mkts, Dow, S&P, Developed Mkts, Russell 2000 and Bonds.....

    All of which are perfect for this correction.....But high risk!!!!!

  3. zxcv1fu


    There are also the 2 X ProFund & Rydex index funds.

    Are the expense ratio lower in ETF's?

    How to benifit from the bear & bull rotation?
  4. Anyone supremely knowledgeable want to explain how these work?

    Right now...
    SSO around 69
    SDS around 73

    And SSO ~= - SDS

    So what happens when SSO gets to 140 or higher? Will the SDS go to zero and stay there?

    Maybe if someone could explain to me how such a structure 2x and -2x are created it could help clear things up?

  5. Chagi


    Thanks for posting about this, looks like the double inverse ETFs just started trading today?

    Daily volumes are looking promising on all of these, though they still have a ways to go.
  6. Chagi


    Interesting question. It's not very likely for the positive ETFs to go to zero, but I wonder how a significant upwards move in the market would affect the double beta inverse ETF.
  7. Are there any bugs in their calculations? The last oil ETF traded out of sync with the underlying market for a while.
  8. dac8555


    it looks like they are not exact...but i dont think the QQQQ is exactly the same as the $COMPX if you were to do a chart overlay. little divergences here and there.

    I am trading the Double and the double inverse a bit...the volumes are low (less than 200k).. so they jump around a bit, but not to the point of bing too risky.

    one of those things that takes time.
  9. 3 Day rally for the bulls.....Will we make it 4?

    We haven't had a four day rally since May......These short funds look attractive right now.....

  10. Direxion Developed Mkts Bear 2.0X Inv (DXDSX)

    Short Europe for Friday!!!!!!

    Any thoughts.....Those indexes closed in the green nicely today....

    If we dont rally in the next 20 minutes this seems like a good play for Friday....But I have to get in today!!!!

    It shorts the iShares MSCI EAFE Growth and Value Index (EFG, EFV)

    BTW---The QID purchase is going quite well from yesterday and I even doubled down into today's rally this morning...

    #10     Jul 27, 2006