Use ProShares Short S&P 500 (SH) as a Conservative Hedge

06/29/2009 11:00 am EST

Focus: ETFS

SH is an exchange traded fund (ETF) that seeks daily investment results that correspond to the inverse of the daily performance of the S&P 500 Index (SPX).

Click to Enlarge

Since this is not as highly leveraged as the "ultra ETFs," it may be used to more conservatively hedge a portfolio against a market decline.

Strong resistance on the S&P 500 rests at 920 to 930, and it closed at 920 on Friday (June 26). The purchase of SH could be an excellent choice in a market that will probably not break to new highs.

The target for this trade is $73.

By Sam Collins of


Related Articles on ETFS

Keyword Image
Three Ways to Play Real Estate
04/08/2019 5:00 am EST

The real estate sector emerged near the top of our internal Sector Scorecard, signaling this group h...