xyin
FYI: bear market mutual fund
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2006-05-21 15:14:00
Given the current market situation, I decided to do a little research on bear market mutual fund (just to prepare for the possibility). so here is what I got FYI. it maybe a good option for someone who would like to hedge their market positions. (bear market fund is basically bet the market will go down, so it is like shorting a stock, given historically economy goes up and market goes up over time, and shorting a stock can have unlimited loss. while buying a bear market can 1) hedge your long positions when market direction is not clear 2) your loss is limited if market does go up.
Rydex Ursa Inv (RYURX)
The investment seeks to provide investment results that inversely correlate with the performance of the S&P 500.
Two week return: 5%
Rydex Ursa C (RYUCX)
The investment seeks to provide investment results that inversely correlate with the performance of the S&P 500.
Two week return: 5%
Rydex Tempest 500 C (RYCBX)
The investment seeks investment results that correlate to the inverse of the S&P 500 Index.
Two week return: 9%
Rydex Tempest 500 H (RYTPX)
The investment seeks investment results that correlate to the inverse of the S&P 500 Index.
Two week return: 9%
Rydex Venture 100 H (RYVNX)
The investment seeks investment results that correlate to the inverse of the NASDAQ 100 Index.
Two week return: 15%
Rydex Arktos Inv (RYAIX)
The investment seeks investment results that match the inverse of the performance of the NASDAQ 100 Index.
Two week return: 7%
ProFunds Bear Inv (BRPIX)
The investment seeks daily investment results that correspond to the inverse of the daily performance of the S&P 500 Index.
Two week return: 4.5%
ProFunds Short Small Cap Inv (SHPIX)
The investment seeks daily investment results that correspond to the inverse of the daily performance of the Russell 2000
Index.
Two week return: 8%
ProFunds UltraShort OTC Inv (USPIX)
The investment seeks daily investment results that correspond to twice the inverse of the daily performance of the NASDAQ-100
Index.
Two week return: 15%
Potomac U.S./Short (PSPSX)
The investment seeks to provide investment returns that inversely correspond to 100% of the performance of the S&P 500 Index.
Two week return: 4.5%
第1次听说这个, 谢谢LZ MM分享, 这个的loss有limit吗? 是怎么算的? 谢谢
i just started to learn it, so I don't know how they calculate.
I assume the loss is limited cuz this is same as you have long position, so the worst case your loss is your principle.
stop order is different.
for ex, you bought 100 shares of XYZ at 50 per share, and you set a stop order to execute if the price drop to 45. (10% that is). so in case the stock price against you, your loss is controlled to at most 10%.
my understanding, bear market MF is basically shorting the index. Say for instance, now the index is 1000, Bear market Mutual Fund ABC holding short position, and you pay 50 /per share to buy this MF. when market drops to 900 (10% drop), the ABC's price will be 55 (10% up). so basically you made money from it.
examples are simplified. just to make a point.
I have not had a chance to do further study. so I am not rushing into any yet. I think some of those bear market MF is already closed to new investers. some requires 10k to initiate a position.
[此贴子已经被作者于2006-5-21 22:59:53编辑过]
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