Newbie question about INVERSE ETFs

Discussion in 'ETFs' started by bhairava, Mar 16, 2008.

  1. bhairava


    While reading a thread on this forum, I came across a term--
    inverse ETFs-- which I didn't know.

    Could anyone briefly define it?
    Are there any good examples of ETFs that illustrate this?

    Thanks alot.

    And, thanks alot to ET members in general, for taking the time to answer members' questions. Good luck trading.

    (ET has enabled me to quickly choose which instrument to trade, thereby concentrating on the TA and money mgmnt techniques to be able to day trade C, and later an index, in the near future.

    But the current environment demands that one take action to preserve capital--and I am looking at other instruments to accom-
    plish this. This is the reason I ask a, relatively, stupid question.)
  2. EEV
  3. There are shitloads of them. May be a little to late to the bear party. Wait for the next bear spike sucker rally. DXD is a personal favorite of mine and has a nice 1-3 point range in this bi-polar market.

    Short & UltraShort MarketCap ETFs:
    ETF Name Ticker Benchmark Index
    Short QQQ PSQ Nasdaq-100
    Short Dow 30 DOG DJIA
    Short S&P 500 SH S&P 500
    Short MidCap400 MYY S&P MidCap 400
    Short SmallCap600 SBB S&P SmallCap 600
    Short Russell2000 RWM Russell 2000
    UltraShort QQQ QID Nasdaq-100
    UltraShort Dow 30 DXD DJIA
    UltraShort S&P 500 SDS S&P 500
    UltraShort MidCap400 MZZ S&P MidCap 400
    UltraShort SmallCap600 SDD S&P SmallCap 600
    UltraShort Russell2000 TWM Russell 2000

    UltraShort Style:
    ETF Name Ticker Benchmark Index
    UltraShort Russell1000 Value SJF Russell 1000 Value
    UltraShort Russell1000 Growth SFK Russell 1000 Growth
    UltraShort Russell MidCap Value SJL Russell MidCap Value
    UltraShort Russell MidCap Growth SDK Russell MidCap Growth
    UltraShort Russell2000 Value SJH Russell 2000 Value
    UltraShort Russell2000 Growth SKK Russell 2000 Growth

    UltraShort Sector:
    ETF Name Ticker Benchmark Index
    UltraShort Basic Materials SMN Dow Jones U.S. Basic Materials
    UltraShort Consumer Goods SZK Dow Jones U.S. Consumer Goods
    UltraShort Consumer Services SCC Dow Jones U.S. Consumer Services
    UltraShort Financials SKF Dow Jones U.S. Financials
    UltraShort Health Care RXD Dow Jones U.S. Health Care
    UltraShort Industrials SIJ Dow Jones U.S. Industrials
    UltraShort Real Estate SRS Dow Jones U.S. Real Estate
    UltraShort Semiconductors SSG Dow Jones U.S. Semiconductors
    UltraShort Oil & Gas DUG Dow Jones U.S. Oil & Gas
    UltraShort Technology REW Dow Jones U.S. Technology
    UltraShort Utilities SDP Dow Jones U.S. Utilities

    Short & UltraShort International:
    ETF Name Ticker Benchmark Index
    Short MSCI Emerging Markets EUM MSCI Emerging Markets Index
    UltraShort MSCI EAFE EFU MSCI EAFE Index
    UltraShort MSCI Emerging Markets EEV MSCI Emerging Markets index
    UltraShort MSCI Japan EWV MSCI Japan Index
    UltraShort FTSE/Xinhua China 25 FXP FTSE/Xinhua China 25 Index

    And here are some inverse Gold ETNs (Exchange Traded Notes):

    * DB Gold Double Short ETN (DZZ)
    * DB Gold Short ETN (DGZ)
  4. Aok


    No stupid questions BH.

    Some sources for you.

    type "stock is etf" into a free scan

    The march 2008 Futures magazine has basic etf info along with breakdown of bigger vol etf's near the back.

    Inverse etf move in price opposite to underlying. So a bear etf will move UP when the market its predicated on moves DOWN.

    Be careful with etf. Some are fairly illiquid and they have different cost structure. But they are exploding in quantity and utility and so expect them to become more popular as time moves on.

  5. And some days you don't get the 2x value with the index as a result of many factors.

    Some days its like Superman 3.