Why FAZ Is Poised to Keep Falling
With that in mind, let's take a closer look at FAZ and see what CAPS investors are saying about the ETF right now.
Total Net Assets
The investment seeks daily investment results of 300% of the inverse (or opposite) of the performance of the Russell 1000 Financial Services Index. The fund, under normal circumstances, creates short positions by investing at least 80% of its assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the index.
Year-to-Date / 1-Year / 3-Year Return
(53.4%) / (69.4%) / (53.1%)
ProShares Short S&P 500
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 85% of the 410 All-Star members who have rated FAZ believe the ETF will underperform the S&P 500 going forward.
I like the financials in the US right now. There's going to be some consolidation until you end up with your few big nationwide guys, similar to the situation in Canada. It just makes sense from a business standpoint and a consumer standpoint. If I move from Flint Michigan to Austin Texas, it's nice if I don't have to switch banks. And if you're a bank, it's nice not to only be operating in Flint.
The article Why FAZ Is Poised to Keep Falling originally appeared on Fool.com.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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