Inverse ETFs

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LeviF
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Inverse ETFs

Post by LeviF » Sat Jul 18, 2015 9:30 am

I'm looking at a stock screener report that shows a bunch of the inverse ETFs with significant price increases over the past 12 months, but the total return is noted as negative or near 0. Is something happening under the hood of these inverse ETFs that is not readily apparent?

sinkpretend
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Re: Inverse ETFs

Post by sinkpretend » Tue Jul 21, 2015 9:14 am

Market is facing a turmoil and there are many possibilities for this ripple.

rhc
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Re: Inverse ETFs

Post by rhc » Sat Jul 25, 2015 4:49 am

Levi, Greetings . . . ,

Are the inverse ETF's you mention, leveraged inverse ETF's ? (i.e. 2x or 3x the underlying index)
If so then you will find that these can be lousy 'investments' over the long term (as you point out above)
How so?
See these links for an explanation of the mathematics involved & how their performance may be adversely affected;

http://tsi-blog.com/2014/11/why-leverag ... rm-trades/

and

http://tsi-blog.com/?s=inverse+ETF&x=0&y=0

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