bear market investing

October 10, 2008 11:34 AM

What are the issues to consider when buying a bear market or market neutral ETF or mutual fund? What are the various strategies these guys employ?

I'm particularly doubtful about these inverse index ETFs. How are these different from shorting some index ETF?

posted by jeffburdges to work & money (2 comments total)

I'm not really sure how all your questions tie together or what you are really getting at, but one of the main issues to consider is NAV. You might also check out some of the earlier ETF questions.
posted by mattbucher at 12:54 PM on October 10, 2008

Very similar. They use options (puts), etf's and short stocks with the target of making money on the way down. In addition to NAV, you may want to read about the Black Scholes Model which takes volatility into account when pricing.
posted by johannahdeschanel at 7:16 AM on October 14, 2008