Archive for March, 2008

Profit In a Bear Market With ETF’s

Monday, March 24th, 2008

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With the current volatility in the market, its a good time to read up about inverse exchange traded funds. The basic mechanics of these securities is that they rise when the market goes down. You can trade them or use them as a convenient way to hedge your portfolio. There are different types of Ultrashort ETF’s that cover the broad market and specific sectors. You can even use double short (inverse ETF’s) which rise by a factor of 2:1.

The Ultrashort Financials (SKF) and the Ultrashort Real Estate (SRS) are two examples of ETF’s that have really picked up in volume in the year 2008 in response to the structural market problems resulting from the sub prime fallout. The Ultrashort Oil & Gas ETF (DUG) is also proving to be popular for individuals who have a bearish view on oil.

Popularity: 48% [?]


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