Some investors have made some profits, want to hold on to their shares, but don't want to lose their gains if the market tanks. There are several ways of protecting a portfolio, including buying puts, shorting similar stocks, or just selling the stocks outright. However, there is an alternative, the bearish ETFs, also known as short ETFs.
An ETF or Exchange Traded Fund is structured to track various stock indices or the inverse of various stock indices. Most are traded on the American Stock Exchange. To get more bang for your buck, there are over 40 bearish ETFs that are leveraged, according to WallStreetNewsNetwork.com. These leveraged bearish ETFs cover numerous sectors, industries and sub-industries.
For example, if you own a lot of telecom stocks, you could by UltraShort Telecommunications ProShares (TLL) which was up 15.19% for the last three months. The ETF attempts to match twice the inverse of the daily performance of the Dow Jones U.S. Select Telecommunications index.
If you own a lot of mid-cap stocks, you could consider buying the Rydex Inverse 2x S&P MidCap 400 (RMS) which has a goal of matching the inverse daily performance of the Mid Cap 400 Index. The ETF is down 15% for the last three months.
For downside protection of a general portfolio, you could take a look at the UltraShort S&P500 ProShares (SDS) ETF which was down 13.22% for the latest three months. It tries to achieve twice the inverse of the daily performance of the S&P 500 index.
For a list of over 40 leveraged bearish ETFs, go to WallStreetNewsNetwork.com. Jut be careful about investing in these, as they may not always perform the way they are supposed to. They are primarily designed for short term index tracking as opposed to long term tracking.
Author does not own any of the above.
By Stockerblog.com
Showing posts with label TLL. Show all posts
Showing posts with label TLL. Show all posts
Wednesday, July 28, 2010
Sunday, June 06, 2010
ETFs that Go Up when the Market Drops, and Pays a Dividend
There are a couple Exchange Traded Funds or ETFs, which go up when the stock market drops, and on top of that, they pay a dividend. These ETFs could be an interesting way of hedging your portfolio.
One of the ETFs is UltraShort Utilities ProShares (SDP), which utilizes futures contracts, options, forward contracts, swap agreements and similar instruments to seek a return that is twice the inverse of the daily performance of the Dow Jones U.S. Utilities index for a single day. This means that when utilities drop, this ETF should increase in price.
SDP pays a small yield of 0.31%, with dividends being paid since June 2007. A large portion of the dividend payouts are generally due to capital gains. Although payments were made in June and December of last year, there is no guarantee that dividends will be paid in the future.
The performance for last year was down, primarily because of the strong move in in utilities and stocks in general since March of last year. However, it has far outperformed the bear market category year-to-date, for 3 months, one year, and 3 years. If you consider investing in this type of ETF, remember that it is designed to provide a return on a daily basis, not long term, and not for income.
Another bearish ETF which pays a dividend is UltraShort Telecommunications ProShares (TLL), which has a yield of 0.47% based on its latest dividend payment. It attempts to achieve twice the inverse of the daily performance of the Dow Jones U.S. Select Telecommunications index, in other words, twice the opposite return of telecom stocks. This ETF doesn't have as long a dividend track record as SDP and it has outperformed the Bear Market Index for one month, year-to-date, and one year.
If you like bearish ETFs, you can get a free list of Short ETFs at WallStreetNewsNetwork.com.
Author does not own any of the above.
By Stockerblog.com
One of the ETFs is UltraShort Utilities ProShares (SDP), which utilizes futures contracts, options, forward contracts, swap agreements and similar instruments to seek a return that is twice the inverse of the daily performance of the Dow Jones U.S. Utilities index for a single day. This means that when utilities drop, this ETF should increase in price.
SDP pays a small yield of 0.31%, with dividends being paid since June 2007. A large portion of the dividend payouts are generally due to capital gains. Although payments were made in June and December of last year, there is no guarantee that dividends will be paid in the future.
The performance for last year was down, primarily because of the strong move in in utilities and stocks in general since March of last year. However, it has far outperformed the bear market category year-to-date, for 3 months, one year, and 3 years. If you consider investing in this type of ETF, remember that it is designed to provide a return on a daily basis, not long term, and not for income.
Another bearish ETF which pays a dividend is UltraShort Telecommunications ProShares (TLL), which has a yield of 0.47% based on its latest dividend payment. It attempts to achieve twice the inverse of the daily performance of the Dow Jones U.S. Select Telecommunications index, in other words, twice the opposite return of telecom stocks. This ETF doesn't have as long a dividend track record as SDP and it has outperformed the Bear Market Index for one month, year-to-date, and one year.
If you like bearish ETFs, you can get a free list of Short ETFs at WallStreetNewsNetwork.com.
Author does not own any of the above.
By Stockerblog.com
Sunday, February 07, 2010
What Stock Goes Up When the Market Drops, and Also Pays a Dividend
There are a couple stocks, actually Exchange Traded Funds or ETFs, which go up when the stock market drops, and on top of that, they pay a dividend. One of them is UltraShort Utilities ProShares (SDP), which utilizes futures contracts, options, forward contracts, swap agreements and similar instruments to seek a return that is twice the inverse of the daily performance of the Dow Jones U.S. Utilities index for a single day. This means that when utilities drop, this ETF should increase in price.
SDP pays a small yield of 0.25%, with dividends being paid since June 2007. A large portion of the dividend payouts are generally due to capital gains. Although payments were made in June and December of last year, there is no guarantee that dividends will be paid in the future.
The performance for last year was down, primarily because of the strong move in in utilities and stocks in general since March of last year. However, it has far outperformed the bear market category. If you consider investing in this type of ETF, remember that it is designed to provide a return on a daily basis, not long term, and not for income.
Another bearish ETF which pays a dividend is UltraShort Telecommunications ProShares (TLL), which has a yield of 0.36% based on its latest dividend payment. The ETF has a goal of providing twice the opposite return of telecom stocks. This ETF doesn't have as long a dividend track record as SDP and its performance underperforms the bear market category.
Author does not own any of the above.
By Stockerblog.com
SDP pays a small yield of 0.25%, with dividends being paid since June 2007. A large portion of the dividend payouts are generally due to capital gains. Although payments were made in June and December of last year, there is no guarantee that dividends will be paid in the future.
The performance for last year was down, primarily because of the strong move in in utilities and stocks in general since March of last year. However, it has far outperformed the bear market category. If you consider investing in this type of ETF, remember that it is designed to provide a return on a daily basis, not long term, and not for income.
Another bearish ETF which pays a dividend is UltraShort Telecommunications ProShares (TLL), which has a yield of 0.36% based on its latest dividend payment. The ETF has a goal of providing twice the opposite return of telecom stocks. This ETF doesn't have as long a dividend track record as SDP and its performance underperforms the bear market category.
Author does not own any of the above.
By Stockerblog.com
Subscribe to:
Posts (Atom)