#### Series 7 - General Securities Representative Exam

Preview Mode

# Which ETF may be appropriate for an investor that wants to hedge a long large cap stock portfolio?

2x Long SPX ETF

A
Inverse RUT ETF

B
Inverse SPX ETF

C
2X Long RUT ETF

D
#### Explanations

The inverse SPX ETF aims to provide returns when Large Cap S&P 500 stocks fall. This is the appropriate hedge. The inverse RUT ETF follows small cap stocks and the other 2 are double leveraged long funds