The Dow’s 588 point drop yesterday (Aug 24) provides us with a one-day test drive for the coming market crash.
The following list provides a ranking of the growth results for the top ten fastest growing 3X inverse ETF’s. For each ETF the corresponding index or benchmark is shown along with yesterday’s growth rate.
- DRIP – Daily S&P Oil and Gas Exploration, +17.39%
- ERY – S&P Energy Select Sector Index, +16.21%
- FAZ – Russell 1000 Financial Services, +14.25%
- DRV – MSCI US REIT Index, +14.10%
- WDRW – Solactive US Regional Banks, +14.04%
- EDZ – MSCI Emerging Markets Index, +13.38%
- CLAW – Dow Jones US Select Home Construction, +12.82%
- TZA – Russell 2000 Small Cap Index, +11.37%
- TECS – S&P Technology Select Sector Index, +11.26%
- DPK – MSCI EAFE Index, +9.73%
The top two fastest growth results came from the energy sector, which has been hurt badly this year by lower prices for oil and gas. However, this sector could recover quickly if energy supplies are reduced by wars or natural disasters.
ETF’s based on the financial sector also performed very well, including FAZ and WDRW. Bank stocks sold off more sharply than the rest of the market. The KBW Bank Index fell 5.44% while the Dow Jones Industrial Average fell by 3.6%. Yesterday was the worst performance for the bank-stock index since November 2011.
Historical data shows the financial sector typically leads the way down during market crashes, so it makes sense FAZ and WDRW would both perform well. FAZ is based on a broader index of the Russell 1000 Financial Services while WDRW provides a more focused vehicle for targeting regional banks. Given the vulnerability of regional banks during the coming crash WDRW should perform very well. For anyone who already owns FAZ and wants to diversify their portfolio, WDRW looks like a good candidate to consider. It closed yesterday at $53.70 per share.
Author: James Bailey
James Bailey is a blogger, business owner, husband and father of two grown children. In 1982, he surrendered his life to the Lord Jesus Christ. In 2012, he founded Z3news.com to broadcast the message of salvation by reporting end time news before it happens.
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