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Can Inverse ETFs Be a Hedge?
Bro, I woke up, check portfolio, and nearly fainted.Nasdaq -4%, Tesla -15%, S&P also deep red. A lot of people panic selling, but actually got ways to hedge la.
If the market continues to drop, inverse ETFs can be one option:
📉 TSLQ – Tesla short ETF
📉 SQQQ – Nasdaq inverse ETF
📉 SPXU – S&P 500 inverse ETF
These ETFs move opposite to the market—when stocks go down, they go up. Recently tried a small position in SQQQ on Tiger, feels a lot easier than shorting stocks directly.
Anyone else using inverse ETFs to hedge? Or just holding and praying for a rebound?
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Es, inverse ETFs can work as a hedge, but you need to be super careful with how you use them, especially if they are leveraged ones like SQQQ. They’re more for short-term tactical plays, not long-term holding, otherwise decay will eat into your returns.
I usually buy inverse ETFs via Tiger – they have quite a wide selection, including US-listed ones like SQQQ and TSLQ. But I only use them sparingly when I feel market sentiment is turning really bearish, otherwise I just focus on DCA-ing into my usual ETFs (e.g. QQQ, KWEB) for the long run.
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Ya, i also hold some SQQQ on Tiger. When I anticipate a downward trend, I usually utilize inverse ET...
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Yes, inverse ETFs can be a hedge against market downturns since they’re designed to gain value when the market falls. However, they’re typically better for short-term strategies due to higher risks and costs. If you're considering hedging, platforms like Tiger offer a range of ETFs and tools to help you manage your portfolio effectively.