Retail Sector Inverse ETF

Discussion in 'ETFs' started by DrPepper, Nov 20, 2008.

  1. Conventional wisdom states that most retailers don't start to turn a profit for the year until the day after Thanksgiving (black Friday). If that is true, with so many people trying to cut expenses and with so many businesses on the verge of bankruptcy, this could be a catastrophic holiday season for many retailers. I am looking for an inverse ETF that tracks the retail sector, including deptartment stores and other stores that sell discretionary items (not staples). Is there a particular ETF in that category that anyone knows of? Thanks.
  2. An interesting and unique perspective on that sector, thanks for sharing.

    You might want to take a look at SZK or SCC.
  3. Thanks for those suggestions. After I posted the question, I read that some of the ETFs have liquidity problems due to low volume which could hinder getting out at a decent price. I also read that the ETF company has to buy the stock in advance in order to allow people to short a market. If the market goes down too far, the ETF company may run out of stock to sell, and the inverse ETF may not be able to continue to rise as fast as the market falls. Obviously, I am new to ETFs and wonder if anyone has any knowledge about how this works.