Bear Market Funds to Buy – ProFunds Short Nasdaq-100 Fund (SOPIX)
If you want to step up a level in aggressiveness, you can bet against the Nasdaq-100 Index with the ProFunds Short Nasdaq-100 Fund (SOPIX).
In 2008, SOPIX had a gain of 45.4%, whereas an ETF that can be considered its opposite — the PowerShares QQQ Trust (QQQ), declined 41.7%.
With more growth stocks compared to the S&P 500 Index, the Nasdaq-100 Index should be expected to have steeper declines in bear markets but more pronounced jumps off of market lows. Therefore, when you buy a bear market fund like SOPIX, you can have a bigger payoff with good timing … but lose big with poor timing.
The added market risk also comes with a higher expense ratio of 1.78% and minimum initial investment of $15,000.