Protecting Gains with ETFs

Smart Money columnist James Stewart is reducing his portfolio’s exposure to the stock market by hedging with exchange traded funds.

In the recent column It’s a Wonderful Rally, Stewart notes that he has invested in the ProShares UltraShort 500 (SDS) as well as the ProShares UltraShort QQQ (QID) as a way to hedge his positions in the SPDR S&P 500 ETF (SPY) and PowerShares QQQ (QQQQ) funds.

Because inverse ETFs are designed to deliver daily returns and have drawn some controversy as a result, Stewart suggests that readers do their own research.

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