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10 Best Funds for Bear Markets


NEW YORK ( TheStreet Ratings) -- Ratings reviews the risk-adjusted return performance of around 25,000 funds every month. With our economy on the mend and corporate profits on the up-swing, a bear market for most domestic stocks is not a good bet.

However, our list of the best bear market funds highlights other places where downside gains can still be made. Of course, none of the following inverse funds are appropriate for long-term holdings and should never account for more than a small hedge position within an overall diversified portfolio.

The following funds present compelling vehicles for short-term speculation where, due to recent weakness, bear markets may exist.

Here are the 10 best bear market funds for 2012:


10. Direxion Daily Russia Bear 3x Shares

Direxion Daily Russia Bear 3x Shares (RUSS) seeks daily investment results of 300 percent of the inverse of the price performance of the DAX Global Russia Index. The fund invests at least 80 percent of its net asset in future contracts, options on securities, equity caps, collars and floors, swap agreement, and other financial instrument.

Expense Ratio: 0.95%

Load: 0.00%

Unrated by TheStreet Ratings:


9. PIMCO CommoditiesPLUS Short Strategy Fund

PIMCO CommoditiesPLUS Short Strategy Fund (PCCAX) seeks total return which exceeds that of the inverse return of its benchmark. The fund seeks to achieve its investment objective by investing under normal circumstances in short positions with respect to the Dow Jones UBS Commodity Index Total Return including commodity-linked derivative instruments.

Expense Ratio: 1.29%

Load: 5.50%

Unrated by TheStreet Ratings:


8. ProFunds Short Precious Metals ProFund

ProFunds Short Precious Metals ProFund (SPPIX) invests in financial instruments that, in combination, are expected to have similar daily return characteristics as the inverse of the Dow Jones Precious Metals Index. The fund invests at least 80% of its assets in financial instruments with these economic characteristics.

Expense Ratio: 1.73%

Load: 0.00%

Rated "E-" by TheStreet Ratings:


7. ProFunds Ultra Short Japan ProFund

ProFunds Ultra Short Japan ProFund (UKPSX) seeks daily investment results before fees and expenses that correspond to twice the inverse of daily performance of the Nikkei 225 Stock Average. The fund invests in equity securities and or financial instruments that in combination should have similar daily return characteristics as twice the inverse of the daily performance of the Nikkei 225 Stock Average. The fund invests at least 80 percent of its assets to equity securities of Japanese companies and or financial instruments with similar economic characteristics.

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