ProShares UltraShort S&P 500 ETF
) -- This exchange-traded fund (
) seeks daily investment results, before fees and expenses, that
correspond to twice the inverse of the daily performance of the
S&P 500 index. The fund normally invests 80% of assets in
financial instruments with economic characteristics that should be
inverse to those of the index.
, I said, "Now could be the time to jump on this volatile
double-inverse fund. If the S&P 500 falls under 1,175, and then
1,150, SDS could make a quick run to $36-$38."
The S&P fell and our trade was made. Now, with the S&P
rebounding following a massive breakdown, SDS could once again be a
good substitute for a short-sale.
But be careful since the market is rebounding. Buy only on a
strong day that could quickly reverse, and then benefit from a
continuation of the bear market.
This leveraged ETF carries more risk than an ordinary ETF, so
investors should use stop-loss orders. And the SEC has determined
that "ultra" funds are not good long-term investments, and that
they are most appropriate for short-term trades.
If you have questions or comments for Sam Collins, please
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