24Business

2 ETF to protect against volatility


Bear market

The opening of the Wild Welts Week with wild volatility has attracted fresh attention in the ways of protecting and even betting in relation to the current bull market.

Keeping this in mind, we get into the data of etf.com to have two ETF designed for power supply a Hungry bear.

AND Ultrashort S & P500 ETF (SDS) It offers twice more reverse exposure to an index of companies with a weighted market limit that is combined to represent Proxy for the S&P 500.

As thoughtful, the SDS moves in the opposite direction SPDR S & P 500 ETF TRUST (SPY). In the past 12 months, for example, SPY has reached a refund of 22.6%, while the SDS has reduced by 34%. The S&P 500 has reached a gain greater than 25% in each of the last two years.

But as a reminder, ETFs that apply the impact on improvement of performance or offenses of short-term exposure are usually reset daily, which means that the trend can be brutal if it goes against you, and they stick to more than a day or two.

The trick of this type of short -term trade activities is the time, which many financial advisers could be considered stupid. But that doesn’t make less fun measuring on your back.

Take, for example, last Monday, when the global tariff threats of President Trump sent capital markets early in the morning before correcting the course later during the day.

From Friday, January 31 to 10 o’clock, from sales trading, on Monday, February 3, the merchants encouraged the SDS for 6.5% for which SPY lost 1.5% for the same period.

A similar story can be told that includes Proshares UltraShort QQQ ETF (SQQQ), offering three times more than the reverse exposure of an indexed proxy for Invesco QQQ Trust (QQQ).

During the duration of 12 months, QQQ has increased by almost 24%, while SQQQ has dropped almost 53%.

However, the magic of shortenation reveals almost 11% of the gain between the middle of the morning on January 31 and in the middle of the morning on February 3 for SQQQ, while QQQ is only by almost 4%.

As for the flow of funds, last week was the winner of $ 2.2 billion, taking nearly $ 130 million, while much higher $ 39 billion in qqq experienced a $ 3.7 billion outflow.

ETF.com Data show that both SDS and SPY have taken the flow of assets over the past week, with SDS of $ 399 million lost $ 5.5 million and $ 624 billion spies looking at $ 5.5 billion heads through the door, which is Spy and Qqq classified as the first two ETFS this week for outflows.

Grass | © Copyright 2025 etf.com. All rights reserved



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Social Media Auto Publish Powered By : XYZScripts.com