What alternative investments to Rydex Inverse S&P 500 are available?
If you are unable to invest in mutual funds, as is the case for foreign investors, or you are averse to using mutual funds, you may choose to short the S&P 500 Index SPDRs (amex: SPY). Keep in mind, however, that you cannot sell short in retirement accounts or accounts that don t have margin capabilities. A similar alternative is ProFunds Bear Fund (BRPIX), which has the same investment objective and uses the same strategy as the Rydex Inverse S&P 500 Fund. We haven t formally recommended this fund because it has a slightly higher expense ratio and is considerably smaller than the Rydex Inverse S&P 500 Fund. In the model portfolio, we recommended a bear market fund that inversely correlates to the S&P 500, because that s most appropriate based on our portfolio holdings. There are, however, alternative bear market funds available that inversely correlate to other benchmarks, like the Nasdaq Composite or the Russell 2000. If your portfolio is technology or small-cap heavy, you may want t
