Traders Gain Inverse Exposure to the S&P 500 with This Fund

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.
Total Returns

The ProShares Short S&P500 ETF (SH) provides inverse exposure to a market-cap-weighted index of 500 large- and mid-cap U.S. firms selected by the S&P Index Committee.

The fund is large and liquid, which is vital for its use as a short-term, tactical investing tool. The fee here is high, which is important to note, especially for long-term traders, because trading costs are more important as the fund is not designed to be held for an extended period of time.

The ETF has $1.91 billion in assets under management, a 0.04% spread and a 0.89% expense ratio, meaning it is more expensive to hold relative to other exchange-traded funds. It currently trades around $24 a share and has a 1.76% yield. Its next distribution date is on March 25.


Chart courtesy of StockCharts.com

The ProShares Short S&P500 has an MSCI ESG Fund Rating of A, based on a score of 6.58 out of 10. The MSCI ESG Fund Rating measures the resiliency of portfolios to long-term risks and opportunities arising from environmental, social and governance factors. ESG Fund Ratings range from best (AAA) to worst (CCC). Highly rated funds consist of companies that tend to show strong and/or improving management of financially relevant environmental, social and governance issues.

In short, SH is a potentially good ETF for short-term traders looking to gain inverse exposure to the S&P 500. However, I urge interested investors to, as with any investment, conduct their own due diligence in deciding whether this fund is right for their individual portfolio goals.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Exclusive  9 Best Dividend Stocks to Buy Now

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
previous article

When it comes to the stock market, pictures can tell us a whole lot. Let me explain what I mean here by a reference to a popular song lyric that fans of new wave/80s rock will surely remember. It’s from The Cure’s 1989 hit, “Pictures of You.” If only I’d thought of the right words I wouldn’t be breaking apart All my pictures of you… OK, I can already hear you saying to yourself, “What does this song have to do with the crazy volatility in the

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE