Short ETF and Ultra inverse ETF securities

This is a special group of short ETF shares that allows participation on the decline of an underlying index by buying concrete inverse ETF.

Short selling strategy is an important technique that should be incorporated in the stock trading system. The stock market offers both types of trading opportunities - for a rise in a price of shares and also for a decline in a price of shares.

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List of the best inverse ETF securities

Here is the list of inverse exchange traded funds I use :

Benchmark index symbol
Short NASDAQ-100 Index PSQ
Short Dow Jones Industrial Average SM DOG
Short S&P 500® Index SH
Short Russell 2000® Index RWM

Ultra short ETF shares move more quickly. Ultra means that a one-point move in a standard ETF is represented by a two-point move in these Ultra Short exchange traded funds.

Benchmark index symbol
UltraShort NASDAQ-100 Index QID
UltraShort Dow Jones Industrial Average SM DXD
UltraShort S&P 500® Index SDS
UltraShort Russell 2000® Index TWM

Ultra Short Sector shares

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

All these Short and Ultra inverse ETF shares are issued by Proshares.

These (mostly leveraged) exchange traded funds offer good intraday trading opportunity. But they also hold several risk factors. The one of them is that they are not very usable for long-term holding.

I personally prefer to short sell standard exchange traded fund shares but I also enter long position in these inverse exchange traded funds in case that normal exchange traded fund shares are not available for shorting or there is better risk reward ratio in such ETF trading setup based on my stock trading system.

My own method for selection of best ETF and stocks for trading uses both types of etf securities for trading strategies.

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