Forum Topics Inverse ETFs
Hands
Added 4 years ago

Wondering what opinion people have on the the Betashares Bear (BEAR) and Strong Bear (BBOZ)ETFs?

Or perhaps other suggestions for Inverse ETFs?

The market is so good at the moment I'm getting nervous.



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Chagsy
Added 4 years ago

+1 from me too. Initially did very well

out of a timely purchase of both of these ETFs. And then didn’t. Ended up down 5 figures thinking I was clever. I wasn’t.

it’s not an original observation but over the course of any long enough time period the market keeps going up. So you’re essentially saying that you can time the downs.

not for me.

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Figgy
Added 4 years ago

I got burnt by BBOZ during the Covid wreck. Second leg down that never came. One thing about the inverse ETFs is the substantial slippage over time. If your thesis doesn't play out and you hold for any substantial length you are almost guaranteed to lose money.

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Hands
Added 4 years ago

Thank you all for your valuable experiences!

Definitely will not be looking to 'invest' in a BEAR etf. Only as a hedge product..... in case the 90% vaccinated rate does not prevent the next iteration of COVID. And/or when masses of people begin to claim workers compensation on covid downtime (one case successful already) - may shake the markets up a little.

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Hackenbacker
Added 6 years ago

Thanks Andrew!

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Hackenbacker
Added 6 years ago

Andrew, I listened to you on the postcast Equity Mates tonight. I was interested that you said you invest overseas through ETFs. I currently have no investments outside of Oz (except  in a way those companies that earn most of their revenue overseas PPH, IRI and CAT - the three you discuss in the podcast)  but I would like to diversify a bit away from the ASX where all my investments are atm but I am not really interested to buy individual stocks in the US or UK or Europe. I have been thinking about buying some ETFs though like ISHARES GLOBAL 100 ETF or VanEck Vectors Wide Moat ETF. What do you think of these and are there any other ones you recommend?

Also in the podcast you said that emerging markets were "underweight" or too risky to invest in directly. What about an emerging market ETF like ISHARES MSCI EMERGING MARKETS ETF?

cheers

Stephen 

 

 

 

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Strawman
Added 6 years ago

Hi Stephen -- I have ASX:VTS (super broad based and very low cost), and also some ASX:NDQ which gives the NASDAQ100. I'm not really sure of the others you mention, but so long as the costs aren't too high and they aren't too narrow, I'm sure they are fine. I'm really just taking a very basic approach. Overall, they are a relatively small percentage of my total portfolio. As for the emerging market ETFs, i'm just not convinced they give a great risk/return. Maybe I'm wrong (others might have a better idea), but I kinda side with Buffett in thinking that too much diversification is not a good thing. It's really just a question of opportunity cost for me. I have limited capital, and have a preference for local, technology based stocks. The more i have in ETFs, the less I have to invest in my chosen pond.

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umop3pisdn
Added 6 years ago

I've not found the ticker for the BEAR ETFs on strawman. Is that intentional?

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Bear77
Added 6 years ago

In the early days there was an eclectic mix of LICs available, but not may, now all Australian LICs appear to have been added. ETF's is a different story. Apart from STW I can't find any other ETFs on Strawman.com. Not even VAS, one of the most popular ETFs. I could understand if there were no ETFs available. Not ideal, but still understandable if it's a cost issue. However, why have STW included yet no others (or possibly very few others - but I haven't found them yet) ? Strange!

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Bear77
Added 6 years ago

STW & SLF. Any more?

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Bear77
Added 6 years ago

"but not may" below should read "but not many"

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