SPDN: An Inexpensive Way To Profit When The S&P 500 Falls

Seeking Alpha2022-10-25

SummarySPDN is not the largest or oldest way to short the S&P 500, but it's a solid choice.This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.SPDN's...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

alod
2022-10-26
alod
Yes ok
andrew123
2022-10-26
andrew123
Like
tigernaut
2022-10-26
tigernaut
👍
- Ytyt:
  ok
Bspn
2022-10-26
Bspn
K
phantom74
2022-10-26
phantom74
liks
JQ62
2022-10-26
JQ62
Like
- ToTheM00N:
  Ok
- XYSAYSYO:
  Hihi

Leave a comment

400

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1182980194?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2022-10-25 23:25","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1182980194","market":"us","top_or_hot":-1,"title":"SPDN: An Inexpensive Way To Profit When The S&P 500 Falls","media":"Seeking Alpha","content":"<div>\n<p>SummarySPDN is not the largest or oldest way to short the S&P 500, but it's a solid choice.This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.SPDN's...</p>\n\n<a href=\"https://seekingalpha.com/article/4548325-spdn-inexpensive-way-to-profit-when-sp500-falls\">Source Link</a>\n\n</div>\n","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SPDN: An Inexpensive Way To Profit When The S&P 500 Falls</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSPDN: An Inexpensive Way To Profit When The S&P 500 Falls\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-25 23:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4548325-spdn-inexpensive-way-to-profit-when-sp500-falls><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummarySPDN is not the largest or oldest way to short the S&P 500, but it's a solid choice.This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.SPDN's...</p>\n\n<a href=\"https://seekingalpha.com/article/4548325-spdn-inexpensive-way-to-profit-when-sp500-falls\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".SPX","symbol_name":"S&P 500 Index","start_time":0,"source_url":"https://seekingalpha.com/article/4548325-spdn-inexpensive-way-to-profit-when-sp500-falls","article_id":"1182980194","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1182980194","pubTimestamp":1666711500,"sourceInfo":null,"weMediaInfo":null,"summary":"SummarySPDN is not the largest or oldest way to short the S&P 500, but it's a solid choice.This ETF ","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{".SPX":"S&P 500 Index","SPDN":"Direxion Daily S&P 500 Bear 1x Shares"},"translate_title":"SPDN：标普500下跌时的廉价盈利方式","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".SPX":0.9,"SPDN":0.9},"content_text":"SummarySPDN is not the largest or oldest way to short the S&P 500, but it's a solid choice.This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.SPDN's 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.BirdlkportfolioSummaryThe S&P 500 is in a bear market, and we don't see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or \"just hang in there\" while thebear takes their retirement nest egg.The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.StrategySPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.Proprietary ETF GradesOffense/Defense: DefenseSegment: Inverse EquitySub-Segment: Inverse S&P 500Correlation (vs. S&P 500): Very High (inverse)Expected Volatility (vs. S&P 500): Similar (but opposite)Holding AnalysisSPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.StrengthsSPDN is a fairly \"no-frills\" way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the \"market\" goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.WeaknessesThe weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.OpportunitiesWhile inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.ThreatsSPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.Proprietary Technical RatingsShort-Term Rating (next 3 months): Strong BuyLong-Term Rating (next 12 months): BuyConclusionsETF Quality OpinionSPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.ETF Investment OpinionSPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9988878939,"gmtCreate":1666740002221,"gmtModify":1676537796871,"author":{"id":"3581595172436790","authorId":"3581595172436790","authorIdStr":"3581595172436790","name":"alod","avatar":"https://static.tigerbbs.com/dfd3f29585ed00df555c839652af67bf","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":7,"crmLevelSwitch":0,"idStr":"3581595172436790"},"htmlText":"Yes ok","listText":"Yes ok","text":"Yes ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9988878939","repostId":1182980194,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9988851444,"gmtCreate":1666737754488,"gmtModify":1676537796266,"author":{"id":"3576260758860416","authorId":"3576260758860416","authorIdStr":"3576260758860416","name":"andrew123","avatar":"https://community-static.tradeup.com/news/f2a1eaba26272212d42018e60e78b422","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":4,"crmLevelSwitch":0,"idStr":"3576260758860416"},"htmlText":"Like","listText":"Like","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9988851444","repostId":1182980194,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9988851118,"gmtCreate":1666737736435,"gmtModify":1676537796258,"author":{"id":"3567239827558758","authorId":"3567239827558758","authorIdStr":"3567239827558758","name":"tigernaut","avatar":"https://static.tigerbbs.com/66e331c670eb88443b88c6bdb76224cf","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":3,"crmLevelSwitch":1,"idStr":"3567239827558758"},"htmlText":"👍","listText":"👍","text":"👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9988851118","repostId":1182980194,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104509499,"gmtCreate":1666740636018,"gmtModify":1666740636018,"authorId":4094269572113460,"author":{"id":4094269572113460,"authorId":4094269572113460,"name":"Ytyt","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9988851118,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"}],"langContent":"EN"},{"id":9988822332,"gmtCreate":1666737094727,"gmtModify":1676537796045,"author":{"id":"3582502134655895","authorId":"3582502134655895","authorIdStr":"3582502134655895","name":"Bspn","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582502134655895"},"htmlText":"K","listText":"K","text":"K","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9988822332","repostId":1182980194,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9988826897,"gmtCreate":1666736993319,"gmtModify":1676537796028,"author":{"id":"3570342809089528","authorId":"3570342809089528","authorIdStr":"3570342809089528","name":"phantom74","avatar":"https://static.tigerbbs.com/c87ef2af41b8696be86cceafb5b5723d","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":3,"crmLevelSwitch":0,"idStr":"3570342809089528"},"htmlText":"liks","listText":"liks","text":"liks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9988826897","repostId":1182980194,"repostType":4,"repost":{"id":"1182980194","pubTimestamp":1666711500,"share":"https://ttm.financial/m/news/1182980194?lang=&edition=fundamental","pubTime":"2022-10-25 23:25","market":"us","language":"en","title":"SPDN: An Inexpensive Way To Profit When The S&P 500 Falls","url":"https://stock-news.laohu8.com/highlight/detail?id=1182980194","media":"Seeking Alpha","summary":"SummarySPDN is not the largest or oldest way to short the S&P 500, but it's a solid choice.This ETF ","content":"<html><head></head><body><h2>Summary</h2><ul><li>SPDN is not the largest or oldest way to short the S&amp;P 500, but it&#39;s a solid choice.</li><li>This ETF uses a variety of financial instruments to target a return opposite that of the S&amp;P 500 Index.</li><li>SPDN&#39;s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&amp;P 500 ETF.</li><li>Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.</li><li>We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3455b141f749a1a70a0312f1a50a9092\" tg-width=\"1080\" tg-height=\"720\" referrerpolicy=\"no-referrer\"/><span>Birdlkportfolio</span></p><h2>Summary</h2><p>The S&amp;P 500 is in a bear market, and we don&#39;t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or &#34;just hang in there&#34; while thebear takes their retirement nest egg.</p><p>The Direxion Daily S&amp;P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.</p><p>SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&amp;P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.</p><h2>Strategy</h2><p>SPDN keeps it simple. If the S&amp;P 500 goes up by X%, it should go down by X%. The opposite is also expected.</p><p>Proprietary ETF Grades</p><ul><li><p>Offense/Defense: Defense</p></li><li><p>Segment: Inverse Equity</p></li><li><p>Sub-Segment: Inverse S&amp;P 500</p></li><li><p>Correlation (vs. S&amp;P 500): Very High (inverse)</p></li><li><p>Expected Volatility (vs. S&amp;P 500): Similar (but opposite)</p></li></ul><h2>Holding Analysis</h2><p>SPDN does not rely on shorting individual stocks in the S&amp;P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&amp;P 500 does.</p><h2>Strengths</h2><p>SPDN is a fairly &#34;no-frills&#34; way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the &#34;market&#34; goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.</p><h2>Weaknesses</h2><p>The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&amp;P 500 will cause SPDN to drop as much as the market goes up.</p><h2>Opportunities</h2><p>While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.</p><h2>Threats</h2><p>SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.</p><h2>Proprietary Technical Ratings</h2><ul><li><p>Short-Term Rating (next 3 months): Strong Buy</p></li><li><p>Long-Term Rating (next 12 months): Buy</p></li></ul><h2>Conclusions</h2><h3>ETF Quality Opinion</h3><p>SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.</p><h3>ETF Investment Opinion</h3><p>SPDN is rated Strong Buy because the S&amp;P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SPDN: An Inexpensive Way To Profit When The S&P 500 Falls</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSPDN: An Inexpensive Way To Profit When The S&P 500 Falls\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-25 23:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4548325-spdn-inexpensive-way-to-profit-when-sp500-falls><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummarySPDN is not the largest or oldest way to short the S&P 500, but it's a solid choice.This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.SPDN's...</p>\n\n<a href=\"https://seekingalpha.com/article/4548325-spdn-inexpensive-way-to-profit-when-sp500-falls\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index","SPDN":"Direxion Daily S&P 500 Bear 1x Shares"},"source_url":"https://seekingalpha.com/article/4548325-spdn-inexpensive-way-to-profit-when-sp500-falls","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1182980194","content_text":"SummarySPDN is not the largest or oldest way to short the S&P 500, but it's a solid choice.This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.SPDN's 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.BirdlkportfolioSummaryThe S&P 500 is in a bear market, and we don't see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or \"just hang in there\" while thebear takes their retirement nest egg.The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.StrategySPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.Proprietary ETF GradesOffense/Defense: DefenseSegment: Inverse EquitySub-Segment: Inverse S&P 500Correlation (vs. S&P 500): Very High (inverse)Expected Volatility (vs. S&P 500): Similar (but opposite)Holding AnalysisSPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.StrengthsSPDN is a fairly \"no-frills\" way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the \"market\" goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.WeaknessesThe weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.OpportunitiesWhile inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.ThreatsSPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.Proprietary Technical RatingsShort-Term Rating (next 3 months): Strong BuyLong-Term Rating (next 12 months): BuyConclusionsETF Quality OpinionSPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.ETF Investment OpinionSPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9988821359,"gmtCreate":1666736786371,"gmtModify":1676537795952,"author":{"id":"3582865570179528","authorId":"3582865570179528","authorIdStr":"3582865570179528","name":"JQ62","avatar":"https://static.tigerbbs.com/da715325270bb26fbcbce63e45f86a81","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3582865570179528"},"htmlText":"Like&nbsp;","listText":"Like&nbsp;","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9988821359","repostId":1182980194,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104510078,"gmtCreate":1666741800746,"gmtModify":1666741800746,"authorId":3581730511233431,"author":{"id":3581730511233431,"authorId":3581730511233431,"name":"ToTheM00N","avatar":"https://static.tigerbbs.com/7b77b689650adddd8a8560dc89fcb930","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9988821359,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104508725,"gmtCreate":1666738232358,"gmtModify":1666738232358,"authorId":3570709468812342,"author":{"id":3570709468812342,"authorId":3570709468812342,"name":"XYSAYSYO","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9988821359,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Hihi</span>","text":"<span class=\"s1\">Hihi</span>","html":"<span class=\"s1\">Hihi</span>"}],"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":400,"commentSize":14,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.28.3","shortVersion":"4.28.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1182980194"}