Looking for a FTSE 100 long or short instrument for ISA

blinko

Hi all

Does anyone know any good

FTSE 100 long or short instrument for my ISA

thanks

JamesU

blinko wrote: »

Hi all. Does anyone know any good. FTSE 100 long or short instrument for my ISA

One possible option is via etfs such as db-xtrackers:

XUKX=FTSE100; XUKS=FTSE100 short. Similarly e.g. XDAX=DAX; XSDX=DAX short.

Plenty of other db-xtrackers that cover long/short on DJ EuroStoxx 50, S+P 500, DJ Stoxx 600 insurance, DJ Stoxx 600 banks etc

JamesU

blinko

JamesU wrote: »

One possible option is via etfs such as db-xtrackers:

XUKX=FTSE100; XUKS=FTSE100 short. Similarly e.g. XDAX=DAX; XSDX=DAX short.

Plenty of other db-xtrackers that cover long/short on DJ EuroStoxx 50, S+P 500, DJ Stoxx 600 insurance, DJ Stoxx 600 banks etc

JamesU

cheers and these are ISA able

JamesU

blinko wrote: »

cheers and these are ISA able

Just checked the ISA rather than standard account and they should be fine. ETFS provide more leveraged (x2/x3) long/shorts but have never looked into those, not for the lighthearted, and should not be held for long time periods really.

Update: just rechecked a few of the db-xtracker etfs during trading hours, fine for purchase in ISA account: e.g. XUKS (FTSE100 short), XSPS (S+P 500 short), XSSX (EuroStox 50 short), XSDX (Dax short) etc

JamesU

cing0

See https://forums.moneysavingexpert.com/discussion/3188618

JamesU

cing0 wrote: »

See https://forums.moneysavingexpert.com/discussion/3188618

Thanks for thread. On the comments in your last post there, over shorter durations etf shorts can mirror quite well with the index provided you choose a long/short pair carefully. Example below of db-xtracker FTSE100 long/short which shows good mirrored consistency (note this is from last year though, just at hand and posted for illustrative purposes).

But care using inverse (short) etfs in general as they are synthetic, are reset daily so over longer periods far more risk the short etf will not mirror the index inversely, and if using leveraged shorts (x2/x3) risks are further compounded both technically and based on market fluctuations. Typical article on the inverse and leveraged etf risks here:

http://www.schwab.com/public/schwab/research_strategies/market_insight/investing_strategies/exchange_traded_funds/leveraged_and_inverse_etfs_not_right_for_everyone.html

Coastline, from discussion on other thread brought here, a newer plot below over a longer period. Using reference at 100% there is substantial variation between approx 9% rise in XUKX and 15% fall in XUKS. Plots over different time frameworks 3-12mths are giving different results too, there does not seem to be consistency, and I am not sure how much of that is due to the DL charting software itself.


JamesU