A Wall Street Journal and SmartMoney columnist is testing out an inverse index ETF, and in the process he's striving to educate readers about the specific uses of such a niche fund. James Stewart highlights the ProShares UltraShort S&P 500 ETF.

"I'm deliberately calling this an experiment, not a recommendation, and suggest conservative investors let me be the guinea pig," Stewart writes. "I found myself examining the many offerings in the ProShares family of exchange-traded funds that let investors profit from market declines. I came away convinced that in unusual circumstances, some of these funds can play a useful role."

Stewart highlights some of the warnings provided by leveraged index fund specialists like ProShares, namely that these ETFs aim for daily results. 

Edited by: Neil Anderson, Managing Editor


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