New short selling rules: More attention to Short ETF.
Source: http://stockweb.blogspot.com/2008/09/new-short-selling-rules-more-attention.htmlPosted on Friday, September 19th, 2008 | In Stocks to Watch
SEC has applied new rules to short selling. Naked short selling has been stopped on Thursday. Now sellers have to borrow company shares before selling them on the market and later on buying them for lower price in order to close position.
This SEC prohibition could attract more attention to Short/Inverse Exchange Traded Funds. Funds provide possibility to profit from declining market even without borrowing of the shares and setting up margin accounts. Another advantage is that in case of short selling trader can lose unlimited amount without proper stop loss. Contrary with Short ETF your investment can go just to zero.
Two major issuers of such a funds are ProShares and Rydex Investments. Already now we can see higher volume than usual for Inverse ETFs. But this situation is mainly because of accelerating credit crunch. After volatility will go down a little bit we will see how much traded volume has been increased. See below available Short ETFs split into the groups.
ETF Name (Ticker)
Short QQQ (PSQ)
Short Dow 30 (DOG)
Short S&P 500 (SH)
Short MidCap400 (MYY)
Short SmallCap600 (SBB)
Short Russell2000 (RWM)
UltraShort QQQ (QID)
UltraShort Dow 30 (DXD)
UltraShort S&P 500 (SDS)
UltraShort MidCap400 (MZZ)
UltraShort SmallCap600 (SDD)
UltraShort Russell2000 (TWM)
Short international :
Short MSCI Emerging Markets (EUM)
Short MSCI EAFE (EFZ)
UltraShort MSCI EAFE (EFU)
UltraShort MSCI Emerging Markets (EEV)
UltraShort MSCI Japan (EWV)
UltraShort FTSE/Xinhua China 25 (FXP)
UltraShort Style:
UltraShort Russell1000 Value (SJF)
UltraShort Russell1000 Growth (SFK)
UltraShort Russell MidCap Value (SJL)
UltraShort Russell MidCap Growth (SDK)
UltraShort Russell2000 Value (SJH)
UltraShort Russell2000 Growth (SKK)
UltraShort Sector:
UltraShort Basic Materials (SMN)
UltraShort Consumer Goods (SZK)
UltraShort Consumer Services (SCC)
UltraShort Financials (SKF)
UltraShort Health Care (RXD)
UltraShort Industrials (SIJ)
UltraShort Real Estate (SRS)
UltraShort Semiconductors (SSG)
UltraShort Oil & Gas (DUG)
UltraShort Technology (REW)
UltraShort Utilities (SDP)
Last 5 posts by Vlada Kynsky
- Jim Rogers about commodities, China and others. - October 25th, 2009
- How to invest in gold now. - October 18th, 2009
- ETF correlation - October 7th, 2009
- Treasury inflation protected securities ETF - October 4th, 2009
- How to invest in gold. - July 11th, 2009
Dow 30, Russell MidCap, Rydex Investments, Sec, Securities And Exchange Commission, Short/Inverse Exchange Traded Funds, Sp 500, Stocks to Watch, UltraShort Semiconductors, Xinhua China
 About Vlada Kynsky (http://stockweb.blogspot.com/)
Vlada Kynsky studied economics and gained work experience as SAP analyst in information technology. His origin is in Czech Republic but due to different work assignments lived in many European countries. He explores mainly emerging markets. In his research he focuses on ETF and international stocks. Another area of interest are technology stocks. |
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