You think with the consumer hit by high oil prices and loss of equity in home that this ETF would be heading up. Makes me think I really don't understand what is meant by consumer goods. Does anyone have a good explanation of what short consumer goods means?
In a nut shell, it means that you are betting that consumer goods will do poorly in the coming weeks and months.
When you are short a stock, you are borrowing the fair market value of the stock and then repaying the loans with the fair market value of the stock. Obviously, if you are borrowing for X dollars, the object is to repay the loan with less than X dollars.
That is what this fund does for you rather than trying to pick individual consumer good stocks to short.
Remember this includes a few companies that are doing well like Wal Mart and safety plays like JNJ etc... GAP reported good earnings today. Not everything in consumer goods is down, but a lot is. Weak sales reported over Thanksgiving will probably drive this higher.