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New ETF Is A Bet On The Death Of Retail Stores: (EMTY)

FYI: (This is a follow-up article.)

ProShares on Thursday launched the ProShares Decline of the Retail Store ETF, a fund that is designed to rise as brick and mortar stores fall, as they have been doing consistently all year. The fund trades under the ticker symbol “EMTY.”
Regards,
Ted
https://www.marketwatch.com/story/new-etf-is-a-bet-on-the-death-of-retail-stores-2017-11-16/print

Comments

  • Thanks Ted. This new inverse ETF makes me chuckle.

    While it's true that XRT is the most shorted ETF, it's also true that high short interest in an ETF is usually a predictor of OUTperformance, not UNDERperformance, at least with ETFs that are decently traded.

    Here's a test I ran on the period 1999-2017:

    Assumptions:

    Universe: All Unleveraged Equity ETFs in the Top 50% of average daily turnover.
    Rebalance: Weekly on Mondays at the Close
    Slippage: Assumed at 0.1% per trade
    Ranking: Buy Top 10 each week with highest Short Interest Ratio

    Results: 7.2% annualized return for the period, compared to 5.9% for SPY.




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