Guard Against Down Days With This ETF

On the surface, there are a lot of new ETFs that don't seem to make a lot of sense. However, it always pays to dig deeper.

Case in point: A company called Sabrient has licensed three indices to Claymore Securities, the third of which just listed as an ETF on Friday: the Claymore/Sabrient Defender (DEF Quote) ETF, which is meant to do well in a down market.

The chart below shows the two other Claymore/Sabrient ETFs -- the Stealth (STH Quote) and the Insider (NFO Quote) -- compared with the S&P 500 and the Russell 2000 for their very short trading lives.

Claymore says it believes these funds will outperform, and so far they have. Clearly, three months do not provide a lot to look at, nor have those months included any type of stress test. The point here should be not to dismiss products just because they appear to be gimmicky. ...