Investor Tools

Long And Short ETFs

The following is a list of long and short Exchange Traded Funds of the major stock indexes. Also included are double multiplier or greater than 1x ETFs. An ETF is a mutual fund that trades throughout the day like an individual stock does.

Many investors do not buy or sell individual stocks, and may only trade index funds (or even just market sector funds). The theory behind buying index funds is that "When the tide comes in, all the boats rise." Meaning, when the market trend is up, on average, more stocks go up than down (entire indexes trade up in a bull market) . The opposite is generally true in a bear market, "When the tide goes out, all the boats sink." By buying market index funds, there is immediate diversification; a paramount concern when investing.

With large index ETFs, one can "play" the trend, or go long when the market is trending up, or go short when the market is trending down. Advanced investors my trade during a sideways market; by trading long and/or short during short-term peaks and valleys (highly risky, and generally can be considered outright gambling).

Always seek professional advice before investing.

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