Series 7 - General Securities Representative Exam
Which ETF may be appropriate for an investor that wants to hedge a long large cap stock portfolio?
2x Long SPX ETFA
Inverse RUT ETFB
Inverse SPX ETFC
2X Long RUT ETFD
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