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Hedge Your Portfolio From The Markets Past With ETF's (DOG, SH, RWM)

|Includes: DOG, RWM, ProShares Short S&P 500 ETF (SH)

market-hedgeThe perfect storm may be brewing in the stock market as the bulls will be looking to cash in on 50% gains since the March 2009 market lows.  Suddenly, the summer is coming to a halt as vacations wind down, kids go back to school and investors get serious about their portfolio’s.

September and October known for their bearish outcomes in the market could be cause for concern in the markets this year.  September on average has produced a negative return for the last 100 years as October has created some of the most memorable stock market crash events.  Take a look at the interesting data provided by Money Morning  below:

downerdays1

With all the pessimism in the air investors can turn to ETF’s for downside protection with their portfolio’s.  ETF’s provide a great way to hedge your investments or just plain bet against the market with inverse ETF’s.   There are 3 inverse ETF’s that come to mind which cover a majority of the US markets for protection or downside gain below: 

The Short Dow 30 ProShares (NYSEARCA:DOG) which seeks daily investment results which correspond to the inverse of the daily performance of the Dow Jones Industrial Average index.  

Chart for Short Dow30 ProShares (<a href='https://seekingalpha.com/symbol/DOG' title='ProShares Short Dow 30 ETF'>DOG</a>)

The Short S&P 500 ProShares (NYSEARCA:SH) which seeks daily investment results which correspond to the inverse of the daily performance of the S&P 500 index. 

Chart for Short S&P500 ProShares (<a href='https://seekingalpha.com/symbol/SH' title='ProShares Short S&P 500 ETF'>SH</a>)

The Short Russell 2000 ProShares (NYSEARCA:RWM) which seeks daily investment results which correspond to the inverse of the daily performance of the Russell 2000 index.

Chart for Short Russell2000 ProShares (<a href='https://seekingalpha.com/symbol/RWM' title='ProShares Short Russell2000 ETF'>RWM</a>)

Disclosure: No Positions