Time to Let the Dog In?
Yes, there is a fund with the symbol DOG, the Short Dow 30, which moves the opposite of the direction the Dow is moving and at the same pace. But when the bears are really in control, as they seem to be in recent days, it can make sense to hedge with some of the “double short,” also known as UltraShort, funds. The funds do the shorting, which means an investor is permitted to hold them in an account where shorting isn’t allowed. Remember, though, that a volatile market may change directions several times in a single day.
These funds are the double inverse of the Dow, the Nasdaq and the S&P:
DXD UltraShort Dow30
QID UltraShort QQQ (Nasdaq)
SDS UltraShort S&P500
These are the double inverse of some international markets:
FXP UltraShort Ftse/xinhua China 25
EFU UltraShort MSCI EAFE
EEV UltraShort MSCI Emerging Markets
EWV UltraShort MSCI Japan
These are the double inverse of specific sectors:
DUG UltraShort UltraShort Oil & Gas
SKF UltraShort Financials
SRS UltraShort Real Estate
SCC UltraShort Consumer Services
RXD UltraShort Health Care
SMN UltraShort Basic Materials
SZK UltraShort Consumer Goods
SSG UltraShort Semiconductors
REW UltraShort Technology
Do your own due diligence. Remember, there’s no such thing as a sure-thing investment. This is not an ad for ProFunds, just some ideas of things you can do when the market goes south. For more, including information you can download, see www.proshares.com/funds/