Here Are 5 ETFs For Your Portfolio If The Bear Is Back To Stay
By David Bettencourt on October 2, 2009 | More Posts By David Bettencourt | Author's Website
“With the market treading water for the past week or two, and some negative economic news being released many are wondering if this is a start of at least a short term market downturn. The following 5 ETFs should help insulate your portfolio from market weakness without exposure to highly leveraged and poorly constructed 2x or 3x short ETFs,” Eric Mancini Reports From Benzinga.
Here is a list of the 5 ETF’s that Eric Mancini goes into detail about:
- SPDR Gold Shares (GLD)
- PowerShares US Dollar Bullish (UUP)
- MacroShares Housing Down (DMM)
- Ishares TIP Bond (TIP)
- Ishares Biotech (IBB)
We have included some information on each ETF below:
The investment (GLD) seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.
The investment (UUP) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Long US Dollar Futures index. The index is comprised solely of long futures contracts. The futures contract is designed to replicate the performance of being long the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
MacroShares Major Metro Housing Down (DMM) allow investors to express a bearish view on the movement of the S&P/Case-Shiller Composite-10 Home Price Index. The underlying value (UV) of DMM tracks the percentage change of the index in an inverse manner with three times leverage. The market price of DMM reflects other factors, including consensus expectations of the cumulative return of S&P/Case-Shiller Composite-10 Home Price Index, plus potential quarterly net income distributions, over the remaining term of the security. MacroShares Major Metro Housing Down funds are collateralized via a trust secured by investments in short-term U.S. Government obligations, overnight repurchase agreements secured by Treasuries and cash. This trust collateral generates automatic income distributions for MacroShares investors to the extent that trust income exceeds trust expenses within a quarterly period.
The investment (TIP) seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Capital U.S.Treasury Inflation Protected Securities (TIPS) Index (Series-L). The fund invests at least 90% of the assets in the inflation-protected bonds of its underlying index and at least 95% if the assets in U.S. government bonds. It may also invest up to 10% of assets in U.S. government bonds not included in the underlying index. The fund invests up to 5% of assets in repurchase agreements collateralized by U.S. government obligations and in cash and cash equivalents.
The investment (IBB) seeks investment results that correspond generally to the price and yield performance of the Nasdaq Biotechnology index. The fund uses the process of representative sampling, holding securities that have a similar investment profile to its index. The fund will normally invest at least 90% of assets in the securities of the index or in American Depository Receipts. The fund may hold up to 10% of assets in securities that are not included in the index. It is nondiversified.
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