Hedging with Bearish ETFs

short etfsThe WSJ’s Ian Salisbury recently explored the use of bearish ETFs as a way to hedge risk.

Salisbury noted that the 25 best-performing ETFs in 2008 have all had total returns exceeding 19% and that they try to generate returns that match the inverse of the major benchmarks.

Specific ETFs mentioned include UltraShort Semiconductor ProShares ETF (SSG), +51.6% through Jan. 18 and Ultrashort Financials ProShares ETF (SKF) +29.8% according to Morningstar.

Read more at the WSJ’s website.

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