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3 Bear Market Funds to Profit From Pain

It's starting to look like a good time to target some bearish exposure. We look at three funds that are right for the job.

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Bear Market Funds to Buy – ProFunds Short Nasdaq-100 Fund (SOPIX)

Bear Market Funds to Buy - ProFunds Short NASDAQ-100 (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.

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