| Previous Close | 39.13 |
| Open | 39.90 |
| Bid | 40.46 x 1000 |
| Ask | 40.47 x 800 |
| Day's Range | 39.57 - 40.75 |
| 52 Week Range | 32.53 - 45.27 |
| Volume | 7,673,213 |
| Avg. Volume | 8,432,934 |
| Net Assets | 775.52M |
| NAV | 36.25 |
| PE Ratio (TTM) | N/A |
| Yield | 1.13% |
| YTD Return | -10.54% |
| Beta (3Y Monthly) | -1.89 |
| Expense Ratio (net) | 0.90% |
| Inception Date | 2006-07-11 |
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.
With a contentious midterms election season coming up, many anticipate a split government that could potentially impact the way ETF investors ride the markets ahead. Some expectations point to Democrats winning back the House of Representatives and the Republicans maintaining a narrow hold on the Senate - Republicans currently dominate both chambers. "If the consensus expectation of a divided government turns out to be correct, the most likely political consequences would be an increase in investigations and uncertainty surrounding fiscal deadlines," David Kostin, Goldman's chief U.S. equity strategist, said in a note.
While investors may be questioning their equity exposure after the recent bout of volatility, U.S. stock ETFs may still find support from strong fundamentals. Sam Stovall, Chief Investment Strategist of U.S. Equity Strategy at CFRA, pointed out in a recent research note that since October, the S&P 500 has witnessed a 40% surge in average intra-day volatility, compared to the first nine months of the year.
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.
The stock market has been on an upswing for a number of years, although it has been particularly volatile lately as trade war fears have heated up, suggesting that this might be the right time to consider bear market inverse ETFs.
Citigroup analysts, according to a recent note, are predicting a full-on bear market before the end of the year, based on historical trends. If indeed that proves to be true – and the multi-year bull market is set to pause, or at least slow down – then it may be time to consider diversifying your portfolio with products that soar when the market slips.
Investors are turning to the options market to hedge bets ahead of the U.S. midterm elections. ETF investors can also plan for potential political risk ahead with bearish or inverse exchange traded funds. The fall months have traditional been a seasonally volatile period for the equity market, and this year, the midterm elections on November 6 will add to the uncertainty as voters head to the polls and determine whether Republicans will maintain control over Congress or lose ground to Democrats, writes Gunjan Banerji for the Wall Street Journal.
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.
Citigroup analysts, according to a recent note, are predicting a full-on bear market within the next few months, based on historical trends. If indeed that proves to be true – and the multi-year bull market is set to pause, or at least slow down – then it may be time to consider diversifying your portfolio with products that soar when the market slips.
The stock market has been on an upswing for a number of years, although it has been particularly volatile lately as trade war fears have heated up, suggesting that this might be the right time to consider bear market inverse ETFs.
The indices are holding up extremely well as trade worries are on hold and a number of good earnings reports have helped to keep sentiment positive. It also helps that there was a big bounce in China overnight and that markets around the world are positive.
Morgan Stanley's chief U.S. equity strategist Michael Wilson warned the equity market is heading toward a destructive phase, CNBC reports. "The Nasdaq could correct by 15 percent plus, the S&P 500 probably goes down about 10 [percent]," Wilson told CNBC.
The stock market has been on an upswing for a number of years, although it has been particularly volatile lately as trade war fears have heated up, suggesting that this might be the right time to consider bear market inverse ETFs.
Citigroup analysts, according to a recent note, are predicting a full-on bear market within the next few months, based on historical trends. If indeed that proves to be true – and the multi-year bull market is set to pause, or at least slow down – then it may be time to consider diversifying your portfolio with products that soar when the market slips.
The stock market has been on an upswing for a number of years, although it has been particularly volatile lately as trade war fears have heated up, suggesting that this might be the right time to consider bear market inverse ETFs.
Shorting the market is a bet that the market will sink. You can profit if you have a short position. You can do this with individual stocks, but you have to be impeccable in your selections. An exchange-traded fund (ETF) allows you to short a market segment instead of individual stocks.
Seasoned professional traders typically understand the investment theory behind 'Sell in May and Go Away,' but it is not always that cut and dry. The procedure is to sell in May and buy stocks back in October, or at least after the summer swoon, and avoid the typical summer losses. In fact, we have seen solid summer market rallies in the recent past, since the credit crisis, and this has made the old adage lose credibility.
These four bear-market inverse ETFs will keep you safe when the market drops.