Monday, January 21, 2008

Bear Market Protection


I have been searching for a Bear Market Mutual Fund. One of interest is the S&P/TSX 60 market inverse fund sold by Horizons BetaPro Funds. It appears to ba available as a normal mutual fund with a $5,000 minimum purchase and also as an Exchange Traded Fund with no minimum limit. The graph is for the ETF version.
It is a relatively new fund that appears to be equivalent to shorting the entire index. It moves opposite to the index. It is a means of offsetting the Bear Market. It has two times leverage so a little goes a long way. $5,000 in this fund will offset $10,000 of long positions in stocks or mutual funds exposed to a down-trending market.
Caution...the leverage works both ways. Call the direction wrong and you lose twice as much.







1 comment:

Anonymous said...

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