Best Inverse Funds To Buy Before The Next Stock Market Crash

But if the market does tumble, these shares will pop higher, giving you a tidy profit.

Here are some of the top inverse funds to invest in now, if we're headed for a second stock market crash in 2020…

No. 4: ProShares Short S&P 500

We mentioned the S&P 500 losing almost 40% earlier this year. But around the same time, ProShares Short S&P 500 (NYSEArca: SH) gained 45% from February to March.

This ETF is what it sounds like. When you invest, you are expecting the S&P 500 to tank. That is, if the 500 biggest companies in the U.S. struggle on average, this fund moves in the opposite direction.

At worst, the fund hedges you. At best, it profits.

This is also one of the biggest inverse funds out there, with over $4 billion in assets. This one comes in at $21.27 per share today.

But you aren't limited to ETFs based on indices…

No. 3: ProShares Short Oil & Gas ETF

One great thing about ETFs is that they come in varieties. Beyond one that mirrors the S&P 500, you can do the same with the oil and gas industry.

ProShares Short Oil & Gas ETF (NYSEArca: DDG) would be a great opportunity to get ahead of the curve, considering what the price of oil did back in March. U.S. oil prices crashed below zero.

A price war between Russian and Saudi Arabia came in the wake of lower fuel demand from COVID-19 to crush oil. But the future could bear even more on the price of oil.

Not only is it possible we'll see another oil demand lapse, but it's also been a watershed year for electric vehicles. Tesla Inc. (NASDAQ: TSLA) is up 243% on the year, and Workhorse Group Inc. (NASDAQ: WKHS) is up 427%.

Companies like these are only seeing the beginnings of their growth. When this industry is fully developed, lesser demand for fossil fuels won't be just a temporary thing.

In either event, it may be good to have this inverse fund in your pocket. Shares go for $29.50 today.

View single page >> |

Disclaimer: Read our disclaimer here.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.