UltraShort Financials ProShares (SKF)
Just when you think the Banks, Brokers and Money Centers
cannot go any lower the Proshares Ultrashort Financials ETF (SKF) hits a new
New 52 Week High
Currently trading up 5% as the
market has taken a steep decline on news of further trouble with automobile
makers General Motors and Ford, SKF has reached a new 52 week high of 164.17. This
ETF seeks to inversely double the return of the Dow Jones US Financial index.
When the DJ US Financial Index goes down 1%, the SKF will gain 2%
The DJ US Financial index includes
such financial stocks as American Express, AIG, Bank of America, Bank of NY
Mellon, Citigroup and Goldman Sachs to name the largest holdings. Many of these
stocks are at 52 week lows and are experiencing write-off and downgrade issues.
a long portfolio by hedging future stock loses by also holding the SKF ETF. If
you are long financials but want protection against further down movement in
your stocks, you can hedge against those loses by also holding some of the
UltraShort Financials ProShares ETF.