Enterprising Investor Forum

Inverse ETFs Tuesday, January 8, 2008

Despite the fact that we favor a ‘buy and hold’ strategy focusing on ‘long’ investments, some of our readers have asked us about inverse ETFs and how to find them.

We feel that these products can be interesting, not necessarily to take a short-term view on an index or sector but as a way to tactically hedge against certain exposures. Please note that ‘single leverage’ means the fund aims to produce the inverse daily performance of the target index or sector each day and ‘ double leverage’ means twice the inverse daily performance.

We had already posted a link on how to navigate the ETF world and find sector specific ETFs (link) but here is a really good pdf document we found on Money and Markets that offers a comprehensive list on Inverse ETF where you can search by index or sector you want to hedge against.

Please click: here.