Keith Richards
BETAPRO SP TSX 60 DAILY INVERSE ETF
HIX-T
DON'T BUY
Aug 23, 2013
Whenever you buy any inverse, you have to have the underlying stock falling to make any money. A single inverse doesn’t have the leveraged problem that a double instrument has. His feeling is that any inverse is a short term play. He is very hesitant to use these kinds of things.
He is looking to add shorts to the US market. He uses the RWM-N. When the markets fall, small caps underperform on the way down. You need a currency hedge.
This is for hedging of your nonregistered portfolio. If you want to pull a little bit of risk off the table, you can Buy some of this which will hedge your portfolio a little.
What ETF shorts the market? Don't short and avoid leveraged ETFs, but if you have to, then look at HIU-T or HIX-T. When you short, you're fighting the dividend and the natural drift upward of equities. Don't short. Instead, look at the TLT-T (up 63% in 2008) or HTB-T (up 29% in 2008); you get the outsized returns from owning a US-denominated bond and get paid to wait.
MER of 1.4%. It's an inverse product, so if markets will go down, this ETF will go up. But you must watch HIX everyday to see how trading goes, because this is a daily reset.
HIX is an inverse play on the TSX 60 similar to HDGE or RWM. It is a single inverse, so there is only a tiny element of future market exposure. There is no leverage involved in HIX.
Like the HIU, rises when the S&P goes down. Own this if you expect hard times ahead, if you're bearish, as banks continue to raise rates to fight inflation.
Whenever you buy any inverse, you have to have the underlying stock falling to make any money. A single inverse doesn’t have the leveraged problem that a double instrument has. His feeling is that any inverse is a short term play. He is very hesitant to use these kinds of things.