|Bid||54.11 x 3100|
|Ask||54.41 x 4000|
|Day's Range||54.08 - 54.36|
|52 Week Range||51.91 - 66.03|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-0.96|
|Expense Ratio (net)||0.95%|
Hawkish Fed outlook and renewed trade tensions shook the market to start August. These inverse ETF areas could be on a tear in the near term.
As the earnings season begins, ETF investors should keep in mind that the upcoming quarterly results may come up short compared to what we have been accustomed to. If the estimate for a decline holds up, it would mark the first time the S&P 500 reported two straight quarters of year-over-year earnings declines in three years.
The decade-old U.S. bull market has been threatened by renewed trade fight lately. Investors could ride out the downbeat sentiments through inverse or leveraged inverse ETFs as these products offer big gains in a short span.
As the market is on its way to witness the worst month since December on renewed trade tensions, shorting the same with ETFs could be a good option.
With a wealth of information available to investors at the drop of a dime, they can make quick trading decisions during and after market hours with TD Ameritrade’s 24/5 trading feature. The program continues ...
As the equity market continues to pullback and more or less erase gains for the year, concerned investors can take on some exposure to bearish or inverse ETFs to hedge against further falls. For example, the ProShares Short S&P500 (SH) takes a simple inverse or -100% daily performance of the S&P 500 index. Alternatively, for the more aggressive trader, leveraged options include the ProShares UltraShort S&P500 ETF (SDS) , which tries to reflect the -2x or -200% daily performance of the S&P 500, the Direxion Daily S&P 500 Bear 3x Shares (SPXS) , which takes the -3x or -300% daily performance of the S&P 500, and ProShares UltraPro Short S&P 500 ETF (SPXU) , which also takes the -300% daily performance of the S&P 500.
Using inverse ETFs can offer a chance to make money even when the stock market is heading south. But how do they work and how safe are they?
Historically, the Dow Jones Industrial Average returned an average 0.6% over October, which has made it the seventh-best month of the year. The S&P 500 typically added 0.9% over October, which is also good enough for seventh place, with the same ratio of positive October months to negative ones as the Dow. Meanwhile, the Nasdaq Composite Index's October was historically the eighth-best month of the year, going back 46 years.
Equity investors who are wary of any further swings can look to alternative ETF strategies to limit the potential risks. According to data from "Stock Trader's Almanac," the month of September has been the worst performing month of the year for the Dow Jones Industrial Average and the S&P 500 since 1950, the worst for the Nasdaq since 1971, and the most difficult for the Russell 1000 and Russell 2000 since 1979, CNBC reports.