Today we are going to look at the new positions added by just one Covestor model manager, Michael Arold, who bought two new positions in his Technical Swing model this week.
One of the positions is ProShares UltraShort Russell 2000 ETF (TWM), which seeks to provide results that match 200% of the inverse of the Russell 2000 index. The index measures small cap U.S. equities and The Wall Street Journal recently reported that it was set to post the worst August performance it has had in 12 years. With a close of 661.86 on August 2nd and a close of 601.72 on August 30th, the fund had already lost more than 9 percent. As of the date of this post (August 31, 2010), TWM was trading at a .18 percent discount to NAV.
Arold also added ProShares UltraShort Financials ETF (SKF). This ETF was designed to perform at 200% the inverse of the Dow Jones U.S. Financials index, which measures the equities within the U.S. financial industry and includes bank, insurance company, real estate company, and development company stocks along with REITs. Since the ETF looks to create an inverse performance, the underlying assets consist of stocks and derivatives that should outperform the assets within the index. The index closed at 270.27 on August 2nd and closed at 247.81 on August 27th, creating a more than an 8 percent loss so far for August. On August 31st, 2010 SKF was trading at a .13 percent discount to the fund’s NAV.
