Using ETFs to Profit in a Market Downturn

Proshare ETFs can help you profit in a down market. So, January was not such a hot month for stocks especially in the first half. There is a lot of fear in the market right now, and significant downturns are possible from time to time. But there’s no reason you can’t profit from a down market. Listed below are a number of Proshare ETFs that will allow you to get short exposure on some major indexes and sectors. They trade like stocks and will increase in value as the underlying index or sector declines. You can use these ETFs to seek profit and protect your portfolio in a market downturn or to hedge an investment. They are as easy to buy as a share of stock, and a much better alternative than selling stock short. The best return for your money would be the Ultra Shorts which correspond to twice (200%) the inverse of the daily performance of the specific index or sector. If you want to start out more conservative, take a look at the Proshares Shorts which are 100% the inverse of the index.

INDEX SHORTS (100%)

QQQQ (PSQ)
Dow 30 (DOG)
S&P 500 (SH )
MidCap400 (MYY)
SmallCap600 (SBB)
Russell2000 (RWM)

INDEX ULTRASHORTS (200%)

QQQQ (QID )
Dow30 (DXD)
S&P500 (SDS)
MidCap400 (MZZ)
SmallCap600 (SDD)
Russell2000 (TWM)

SECTOR ULTRASHORTS (200%)

Basic Materials (SMN)
Consumer Goods (SZK )
Consumer Services (SCC)
Financials (SKF)
Health Care (RXD)
Industrials (SIJ)
Oil & Gas (DUG)
Real Estate (SRS)
Semiconductors (SSG)
Technology (REW)
Utilities (SDP)