BETAPRO SP500 DAILY INVERSE ETF (HIU.TO) Buy,…

BETAPRO SP500 DAILY INVERSE ETF (HIU.TO)

10.81

-0.10 (0.92%)

as of Jan 17, 2025, 8:35:15 pm Market Open.

33 watching

TOP PICK

Must check every day! Markets change daily. He can't hold it as a manager because of overnight resets. Good way to make money from falling markets.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly HIU is a defensive holding we have selected as a TOP PICK in the past and is recommended for Canadian investors. It is a low MER inverse ETF for the S&P500. Its value will also benefit if the CAD dollar weakens during a market retracement as currency is not hedged. With markets unable to make new highs over the past 3 weeks, the old adage of "sell in May and go away" could be coming true again. We are finding it increasingly challenging to find companies that offer growth opportunities, the don't trade at too high of an earnings multiple, and are cash flow positive. Just sayin'.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly We are once again cautioning against a possible market retracement and are recommending this inverse S&P500 ETF as a Top Pick. As it is priced in Canadian dollars it will receive added benefit from a weakening in the Canadian dollar if the market retraces. We recommend this as a hedge against dividend paying stocks. It has a very low MER as well.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly As markets appear ready to see at least some profit taking for the next while, we are again encouraging a defensive holding to protect against a sizable market retracement. HIU is an inverse ETF of the S&P500 Index that trades in Canadian dollars. This allows investors to continue holding dividend paying investments in the event of market erosion. We would expect the Canadian dollar to weaken relative to the US greenback in a market pull back, to there will be an added kicker to the return. Yield 0%

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Editor: Michael O'Reilly With the general stock markets almost returning to pre-pandemic highs, analysts feel stocks are price near "perfection". This means that the market is at risk to sizable pullbacks if earnings and future growth prospects stumble. For income investors, HIU offers a way to confidently hold income producing assets, even in the face of significant market retracement. HIU is an inverse ETF of the S&P500 index that trades in Canadian dollars. Holding an asset that rises in value as the market erodes, creates a cash war chest that can be used to purchased undervalued assets later on. The added kicker is that the Canadian dollar will likely fall with the market, which will further add to the value of the ETF. A very defensive holding. Yield 0%

COMMENT

S&P Inverse ETF? Anything that is inverse or leveraged requires caution and he advises only highly sophisticated traders use these. HIU-T is an inverse S&P ETF in Canada. Volatility makes them erode over time, so be careful.

TOP PICK

See also the HIX-T, another top pick and also an inverse ETF. This is the U.S. inverse ETF. Like HIX, this is a daily reset, so you must watch this EVERY day. You make money when the market falls and vice versa. Again, he's playing defence.

COMMENT

What ETF to buy to short the market? Don't short and avoid leveraged ETFs, but if you have to, then look at HIU-T or HIX-T. When you short, you're fighting the dividend and the natural drift upward of equities. Don't short. Instead, look at the TLT-T (up 63% in 2008) or HTB-T (up 29% in 2008); you get the outsized returns from owning a US-denominated bond and get paid to wait.

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PAST TOP PICK

(Top Pick Aug 23/16, Up 0.72%) He bought it because he wanted to raise cash and buying an inverse ETF that is not leveraged is one way to do it.

BUY

HIX-T vs. HIU-T. Inverse exposure to their respective indexes. They are a way to hedge your overall exposure. He loves the idea of using these.

DON'T BUY

Short? The chart shows erosion. The ETF must have incurred a lot of transaction costs. The erosion is because the S&P has been rising. The S&P has been coming off in the last while, but he hasn’t seen a corresponding uptick. When trading something like this, a derivative of the S&P 500, you should look at the S&P 500 chart to begin with, which has support at $1980, and big support at $1800. The momentum indicator never confirmed a new high, making this a low quality new high. To build a Bear case, the S&P has to first break $1980, and then there is a Bear case. Right now he would not short this, even though the market is losing momentum.

BUY

He is net short the US market right now in his long/short strategy. It depends on your tolerance of risk.

TOP PICK

This is effectively a way of raising cash. An “inverse” is the opposite of the market. If you buy a 5% position in an inverse, you have 5% that is not in the market, plus you are offsetting a holding you have, something like General Electric (GE-N). He is not making a bet on the market, he just wants to keep his GE and offset it with an inverse ETF.

COMMENT

S&P 500 Inverse ETF. If he were betting against the market and going into an inverse, this is one he would choose because it is not multiplied.

BUY

Would go for it because it is a one-time rather than leveraged. This one would protect you against weakness.

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