ProShares Credit Suisse 130/30 (AMEX:CSM)

LostCluster (< 20) Submitted: 3/27/2010 8:20:52 PM : Start Price: $52.65 CSM Score: +0.51

I first heard about this ETF on Consuelo Mack WealthTrack on PBS, when the host interviewed one of the founders of the fund, who presented a very simple case for something hedge funds have been doing for a long time. It goes like this... bot all of the S&P 500 are going to go up even in the best of times... there's always going to be some losers in the bunch. So, this ETF uses a screen to identify the 10% of so in the 500 companies that are headed down, and then shorts them with 30% of the market cap. This gives the fund 130% of its value to go long with the better 90% or so in the S&P 500. This trades for the most part near the S&P 500, but slightly outperforms. Costs are low because this isn't actively managed, it's basically a formula and a datafeed.