acaojnd.info

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

Advancements in medicine and an increase in capitalism in the world as well as other factors all contributed to the development of the field of sports nutrition.As scientists learned more and more about our bodies and the optimum level of strength and physical fitness they can harbor, businessmen jumped the gun and manufactured products and services that actually help athletes meet these optimum levels. The media joined in the ruckus and published materials leading to the promotion of both the scientific and the commercial side of the field.Sports nutrition has been changing through the years around the world. It’s not just that the topics are different – the emphasis and approach have also changed.Peak Performance, a sports magazine carried an article on dehydration in runners on October 1990, its maiden issue. This article compared the benefits of plain water with those of dilute glucose solutions, which are more isotonic and therefore absorbed more rapidly.Today, go into almost any supermarket, convenience stores and even school cafeterias and you’ll find a ready supply of sports drinks aimed at maintaining hydration just like glucose solutions.The difference is that by using soluble long-chain glucose polymers instead of simple glucose, it’s now possible to create an isotonic drink that hydrates and also supplies significant amounts of carbohydrate to working muscles. And, the good thing is, sports drinks also taste better.More than 10 years ago, it was made public that muscle damage brought about by free-radicals may be reduced by having supplements of antioxidant vitamins A; C and E. Years after, antioxidant supplementation became a norm in the world of sports nutrition.Now, researchers are also beginning to understand that muscle damage is a more complex subject. It is difficult to assess free radical damage in athletes and it has been found out those large amounts of antioxidant nutrients may actually cause cellular damage and impair performance.The carb loading technique has been widely used over the years by athletes all over the world. A carbohydrate-rich diet is important in maintaining muscle glycogen stores thus ensuring high endurance levels.However, in the 1990′s it became clear that the glycemic index and release rate of different carbohydrates had important influence on when they should best be consumed in relation to physical activity.The relationship of carbohydrates and proteins were also discovered namely that carbohydrates promote protein-sparing in the body. It was also discovered recently that consuming carbohydrates before and during prolonged bouts of strenuous exercise can help protect the immune system.One of the most exciting recent developments in sports nutrition has been the rise of creatine supplementation. The use of creatine is now very common. Creatine renews the muscles essential energy source, ATP or adenosine triphosphate. Increased levels in muscles optimizes energy turnover meaning you’ll more energy for high power exercise and faster recovery during and after workouts. Creatine also increases the athlete’s maximum effort, delays fatigue and therefore prolongs endurance.New wisdom and therefore new products have definitely enabled athletes to fuel themselves better, work harder, train longer and recover more rapidly. However, as in any kind of innovation there will always be downsides.Nutritional supplements available to most athletes in the 80′s were very straightforward. Some athletes took drugs but the boundaries between nutritional supplements and drugs clear. Today, the race to find new formulas to boost performance has resulted to the availability of sports nutrition supplements which do not really occur naturally. The result is that the distinction between a nutrient and a performance-enhancing substance has become increasingly blurred.Some of these supplements contain ingredients that can cause athletes to violate the rules and regulations governing their sport because of unintentional contamination by other, ‘exotic’, substances present in the supplement manufacturing environment.More developments will be created in the world of sports nutrition and these will definitely spawn ethical questions. “Nutrigenomics”-the relationship between genetics and nutrition-will be more researched upon.As scientists become more skilled at discovering the processes of our genes, it will be possible that rather than adopting a general approach for sports nutrition, athletes around the world will be genetically tested to help them determine precise individual requirements for optimum health.The next years will predictably be more exciting for the world of sports nutrition.