
Those mutual funds are not your ordinary BUY and HOLD type of funds, NO,those funds actually are using their money to profit from the degradation in price of certain stocks, that's it,they SHORT-sell the stocks rather than buying them. This strategy works very well when we have a DOWN TREND signal and you don't want to short the stocks by yourself. Even in an IRA accounts those funds are a valid investment. We have complied a list of Bear Market funds,that you can purchase from your broker,or directly from those companies.
| NAME | Symbol | Fund Family | Website |
| A. Actively Managed Bear Funds: | |||
| Prudent Bear Fund | BEARX | Prudent Bear Funds | www.prudentbear.com |
| Grizzly Fund | GRZZX | Leuthold Funds | www.leutholdfunds.com |
| B. S&P 500 Index Bear Funds: | |||
| US Short Fund | PSPSX | Potomac Funds | www.potomacfunds.com |
| Bear | BRPIX | ProFunds | www.profunds.com |
| Ursa | RYURX | Rydex Funds | www.rydexfunds.com |
| Short OTC | SOPIX | ProFunds | www.profunds.com |
| UltraBear | URPIX | ProFunds | www.profunds.com |
| Tempest 500 | RYTPX | Rydex Funds | www.rydexfunds.com |
| C. NASDAQ 100 Cap Bear Funds: | |||
| OTC Short Fund | POTSX | Potomac Funds | www.potomacfunds.com |
| Arktos | RYAIX | Rydex Funds | www.rydexfunds.com |
| UltraShort OTC | USPIX | ProFunds | www.profunds.com |
| Venture 100 | RYVNX | Rydex Funds | www.rydexfunds.com |
| D. Russell 2000 Small Cap Bear Funds: | |||
| Short Small-Cap | SHPIX | ProFunds | www.profunds.com |
| E. U.S. Treasury 30-year Bond: | |||
| Rising Rates Opportunity | RRPIX | ProFunds | www.profunds.com |
Updated in 2007:
There are now a few ETFs whose value moves inversely to changes in specific indexes such as the S&P 500, Dow Jones Industrial Average, Nasdaq 100 and the S&P Mid-Cap indexes. The respective "short" indexes are: ProShares Short S&P500 (SH), ProShares Short Dow30 (DOG), ProShares Short QQQ (PSQ) and PowerShares Short Mid-Cap 400 (MYY). At the same time, there are some new ETFs that DOUBLE the moves that those indexes occur: QID, SDS, MZZ, DXD.UltraShort QQQ ProShares (ETF) seeks daily investment results that correspond to twice (200%) the inverse of the daily performance of the NASDAQ-100 Index. The same idea applies to SDS(ProShares UltraShort S&P500),MZZ(ProShares MidCap400) and DXD(ProShares DowJones30).
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