Of the 74 leveraged funds that take short positions, 26 were introduced in the past year. Thirty of the remaining 48 funds have generated returns in the past year. But the one-year average for the group has shrunk to 9.1%.
Industrial stocks have surged in the past month, causing the
ProShares UltraShort Industrials
(SIJ - Get Report) to lose 26%. The fund's one-year return has withered to 39% from 188% two months ago.
Best Performing Inverse ETFs Surrender Gains
|PowerShares DB Commodity Double Short ETN (DEE) U
|PowerShares DB Commodity Short ETN (DDP) U
|PowerShares DB Agriculture Double Short ETN (AGA) U
|ProShares UltraShort Industrials (SIJ) B+
|ProShares UltraShort Utilities (SDP) C+
|PowerShares DB Agriculture Short ETN (ADZ) U
|Rydex Inverse 2x S&P 500 ETF (RSW) C
|ProShares UltraShort Dow30 (DXD) C+
|ProShares Short MSCI EAFE (EFZ) C
|ProShares UltraShort S&P500 (SDS) C+
Source: TheStreet.com Ratings & Bloomberg 5/5/2009
Unlike mutual funds, which are meant to be held for years, leveraged ETFs are designed for short-term trading.