EXCHANGE TRADED FUNDS (ETF) VIEW. Be very careful of the new inverse ETFs! As I feel that a new bear market has now started, I’ve gotten my hands on a list of ProShares inverse ETFs, or Short and UltraShort ETFs, with which one can short the stock market (by buying!) various indices and specific market sectors. I shorted oil, symbol DUG, near the close November 27th to test them out (and technically because oil hadn’t been able to break through the $100 price level). Immediately I noted that DUG went down even though the price of oil itself was going down. And here it is, a week later after oil dropped about -10% and DUG is down about -6%! Schwartz View: I found out pretty quickly that DUG tracks the Dow Jones US Oil & Gas Index. In other words it tracks oil stocks not the price of oil. Bottom line; buyer beware! These concepts are good but the early efforts at living up to the idea is proving difficult, at best.
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