Using Inverse ETFs to protect your IRA retirement savings during bear markets

Inverse ETFs are a great way to protect your IRA retirement savings during bear markets.  IRA account are prohibited from shorting stocks and this leaves your IRA retirement savings vulnerable during bear markets.

Although the notion that it is Unamerican to short stocks, lawmakers' unintended consequences can damage IRA retirement saving.  The stock market goes up as well as down.  By prohibiting shorting in IRA accounts, investors are vulnerable during down markets.

Using Inverse ETFs is one way around this archaic regulation and it provides protection against bear markets.  Inverse ETFs are active investment and the value of it goes up when the price of the underlying securites goes down.  This means you can profit from falling prices.  However, Inverse ETFs are not suitable as long term investment.  You cannot buy it and forget about it.  The time horizon for holding Inverse ETFs should be limited to three to five days during a market selloff.

The following are lists of specialized Inverse ETFs that you can choose and customize to hedge against specific risk in your porfolio.

  1. Beta (General Stock Market Risk)
  2. Style (Investment Style Risk)
  3. Sector (Industry Sector Risk)
  4. International (Global Country Risk)
  5. Commodities (Commodities Risk)
  6. Currency (Foriegn Exchange Risk)
  7. Treasuries (Interest Rate Risk)

This list of Inverse ETFs aims to hedge against market risk.  Market risk is also known as Beta. It is a shotgun approach against the broader market sell-off.  ProShares UltraShort S&P 500 ( ARCX Ticker Symbol: SDS ) and ProShares UltraShort QQQ ( ARCX Ticker Symbol: QID ) are the most popular Inverse ETFs in this category.

Beta Inverse ETFs
Ticker Description Exchange
BXDB Barclays Short B Lvg Inv S&P500 ARCX
BXDC Barclays Short C Lvg Inv S&P500 ARCX
BXDD Barclays Short D Lvg Inv S&P500 ARCX
DOG ProShares Trust Short Dow30 ARCX
DXD ProShares UltraShort Dow 30 ARCX
PSQ ProShares Trust Short QQQ ARCX
QID ProShares UltraShort QQQ ARCX
ROSA iPath Short Extended Russell 1000 TR Index ARCX
RSW Rydex ETF Inverse 2x S&P 500 ARCX
RTSA iPath Short Extended Russell 2000 TR Index ARCX
RWM ProShares Trust Short Russell 2000 ARCX
SDOW ProShares UltraPro Short Dow 30 ARCX
SDS ProShares UltraShort S&P 500 ARCX
SFSA iPath Short Extended S&P 500 TR Index ARCX
SH ProShares Trust Short S&P 500 ARCX
SIJ ProShares UltraShort Industrials ARCX
SPXU ProShares UltraPro Short S&P 500 ARCX
SQQQ ProShares UltraPro Short QQQ NASDAQ
SRTY ProShares UltraPro Short Russell 2000 ARCX
TWM ProShares Ultra Short Russell 2000 ARCX
TWQ Proshares Ultra Short Russell 3000 ARCX

 


 

This list of Inverse ETFs aims to hedge against specific style of stocks such as small growth stocks or large value stocks.  Small Cap Bear 3x Shares ( ARCX Ticker Symbol: TZA ) and Large Cap Bear 3x Shares ( ARCX Ticker Symbol: BGZ ) are the most popular Inverse ETFs in this category.

Style Inverse ETFs
Ticker Description Exchange
BGZ Large Cap Bear 3x Shares ARCX
MWN Mid Cap Bear 3X Shares ARCX
MYY ProShares Short MidCap 400 ARCX
MZZ ProShares UltraShort MidCap 400 ARCX
SBB ProShares Trust Short SmallCap 600 ARCX
SDD ProShares UltraShort SmallCap 600 ARCX
SDK UltraShort Russell MidCap Growth ARCX
SFK UltraShort Russell 1000 Growth ARCX
SJF UltraShort Russell 1000 Value ARCX
SJH UltraShort Russell 2000 Value ARCX
SJL UltraShort Russell MidCap Value ARCX
SKK UltraShort Russell 2000 Growth ARCX
SMDD ProShares UltraPro Short MidCap 400 ARCX
TZA Small Cap Bear 3x Shares ARCX

 


 

This list of Inverse ETFs aims to hedge against specific sectors in the economy.  Financial Bear 3x Shares ( ARCX Ticker Symbol: FAZ ) and Energy Bear 3x Shares ( ARCX Ticker Symbol: ERY ) are the most popular Inverse ETFs in this category.

Sector Inverse ETFs
Ticker Description Exchange
BIS ProShares UltraShort Nasdaq Biotech NASDAQ
ERY Energy Bear 3x Shares ARCX
FAZ Financial Bear 3x Shares ARCX
KRS ProShares Short KBW Regional Banking ARCX
RETS Direxion Daily Retail 2X Bear ARCX
REW ProShares UltraShort Technology ARCX
RXD ProShares UltraShort Health Care ARCX
SBM ProShares Short Basic Materials ARCX
SCC ProShares UltraShort Consumer Services ARCX
SDP ProShares UltraShort Utilities ARCX
SEF ProShares Short Financials ARCX
SIJ ProShares UltraShort Industrials ARCX
SKF ProShare UltraShort Financials ARCX
SMN ProShares UltraShort Basic Materials ARCX
SOXS Direxion Daily Semiconductors Bear 3X ARCX
SRS ProShares UltraShort Real Estate ARCX
SSG ProShares UltraShort Semiconductors ARCX
SZK ProShares UltraShort Consumer Goods ARCX
TLL ProShares UltraShort Telecommunications ARCX
TYP Technology Bear 3x Shares ARCX

 


 

This list of International Inverse ETFs aims to hedge against specific countries in the global economy.  ProShares UltraShort MSCI Japan ( ARCX Ticker Symbol: EWV ) and Emerging Markets Bear 3x Shrs ( ARCX Ticker Symbol: EDZ ) are the most popular Inverse ETFs in this category.

International Inverse ETFs
Ticker Description Exchange
BRIS Direxion Daily BRIC Bear 2X ARCX
BZQ Proshares Ultshort MSCI Brazil ARCX
CZI Direxion Daily China Bear 3X ARCX
DPK Developed Markets Bear 3x Shs ARCX
EDZ Emerging Markets Bear 3x Shrs ARCX
EEV ProShares UltraS MSCI Emerging Markets ARCX
EFU ProShares UltraShort MSCI EAFE ARCX
EFZ ProShares Shorts MSCI EAFE ARCX
EPV Proshares UltraShort MSCI Europe ARCX
EUM ProShares Short MSCI Emerging Markets ARCX
EWV ProShares UltraShort MSCI Japan ARCX
FXP ProShares UltraShort FTSE China 25 ARCX
HDGE AdvisorShares Active Bear ETF ARCX
INDZ Direxion Daily India Bear 2X ARCX
JPX Proshares UltraShort MSCI Pacific ARCX
LHB Direxion Daily Latin America Bear 3X ARCX
MFSA iPath Short Enhanced MSCI EAFE Index ARCX
MLPS UBS MLP Short E-TRACS ARCX
SMK Proshares UltraShort MSCI Mexico ARCX
YXI ProShares Short FTSE China 25 ARCX

 


 

This list of Commodities Inverse ETFs aims to hedge against falling commodity prices.  ProShares UltraShort Oil And Gas ( ARCX Ticker Symbol: DUG ) and PowerShares DB Crude Oil Double Short ( ARCX Ticker Symbol: DTO ) are the most popular Inverse ETFs in this category.

Commodities Inverse ETFs
Ticker Description Exchange
ADZ DB Agriculture Short ETN ARCX
AGA PowerShares DB Agriculture Double Short ETN ARCX
BOM PowerShares DB Base Metals Double Short ARCX
BOS PowerShares DB Base Metals Short ARCX
DDG ProShares Short Oil & Gas ARCX
DDP DB Commodity Short ETN ARCX
DEE DB Commodity Double Short ETN ARCX
DGZ DB Gold Short ETN ARCX
DNO United States Short Oil Fund ARCX
DTO PowerShares DB Crude Oil Double Short ARCX
DUG ProShares UltraShort Oil And Gas ARCX
DUST Direxion Daily Gold Miners Bear 2X ARCX
DZZ DB Gold Double Short ETN ARCX
GASX Direxion Daily Natural Gas Bear 2X ARCX
GLL ProShares UltraShort Gold ARCX
PTD E-TRACS UBS Short Platinum ETN ARCX
SZO PowerShares DB Crude Oil Short ARCX
ZSL ProShares UltraShort Silver ARCX

 


 

This list of Currency Inverse ETFs aims to hedge against falling exchange rates.  ProShares UltraShort Euro ( ARCX Ticker Symbol: EUO ) and ProShares UltraShort Yen ( ARCX Ticker Symbol: YCS ) are the most popular Inverse ETFs in this category.

Currency Inverse ETFs
Ticker Description Exchange
DRR Market Vectors Double Short Euro ARCX
EUO ProShares UltraShort Euro ARCX
UDN PowerShares DB US Dollar Bear ARCX
YCS ProShares UltraShort Yen ARCX

 


 

This list of US Treasury Notes Inverse ETFs aims to hedge against rising interest rate.  UltraShort Lehman 20+ Year Treasury ( ARCX Ticker Symbol: TBT ) and Direxion 30 Year Treasury Bear 3X ( ARCX Ticker Symbol: TMV ) are the most popular Inverse ETFs in this category.

Treasuries Inverse ETFs
Ticker Description Exchange
DLBS iPath Treasury Long Bond Bear ARCX
DSTJ JPM -2x Long Bond Treasury Futures ARCX
DSXJ JPM -2x 10 Year Treasury Futures ARCX
DTUS iPath US Treasury 2 Year Bear ARCX
DTYS iPath US Treasury 10 Year Bear ARCX
PST UltraShort Lehman 7-10 Year Treasury ARCX
TBF ProShares Short 20+ Year Treasury ARCX
TBT UltraShort Lehman 20+ Year Treasury ARCX
TMV Direxion 30 Year Treasury Bear 3X ARCX
TYO Direxion 10 Year Treasury Bear 3X ARCX

 

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