Trade Radar Operator

Banks Are Bearish, or Hedging, Financials and Real Estate

bluesmoke -

The ProShares Ultra-Short Real Estate ETF is basically an inverse REIT which implies the banks are primarily betting against U.S. commercial real estate.

iShares REIT ETF Drops: Could Be a Long Way Down

I tend to look at holding the Ultra Inverse funds as a short-term reaction to market moves. As a result, I don't worry too much about the expense ratios. IYR does provide a dividend, the Ultra funds do not. If you are shorting IYR, you will not receive the dividend.

Now is the Time for Inverse Sector ETFs

Malkiel is correct. Buying the inverse ETFs when they are down is just the old "buy low/sell high" concept. For example, I did initiate a position in QID but I did it several weeks ago. At that time QID was still making a bottom while the NASDAQ was riding high. I endured some pain until the NASDAQ finally dropped. And, of course, these funds will bounce around as much as the correpsonding long funds as there is plenty of volatility in both kinds of funds, expecially the Ultra versions.