Inverse or 'Short' Exchange Traded Funds

Hi Freetrade Team,

Is it possible that we start to add some inverse or ‘short’ ETFs?

I realise this may be confusing to some newer investors but with a decent description (and a warning) and maybe a link to a blog post the Freetrade team might like to post… I think it could be a nice addition to the platform.

Sometime in the future I anticipate short selling and options and so on will be available via Freetrade but along with that and as a start how about adding some inverse ETFs?

Whatdya think?

Thanks,

They’ve said no to short selling and options, as it’s supposed to be an investment platform not a trading platform.

However personally I can’t see any problem with inverse ETFs. You can bet against the market with these without the potential to lose more than you put in

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Thanks Dave I wasn’t aware of that.

My thinking exactly, there’s no need for margin here. The funds themselves are often leveraged though so one would still have to be sure about what they’re doing else you’re waking up the next day with a green market and huge losses.

I suggested a few inverse index (US & UK) ETF’s a few months ago. Feel free to find them within the suggested new shares section and to vote for them.

The more votes that these get, the more chance that they will get added. :slight_smile:

Matt

I can’t see why they shouldn’t be added to Freetrade, given they’re not the same as futures or options. Nowadays during the Covid outbreak they would be a reasonable choice for many investors, and would help Freetrade to keep those transactions flowing even in times of great uncertainty. For those unfamiliar with the concept of inverse ETFs, here is a simple explanation.

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Completely agree on the inverse ETFs, in times like this they are a great temporary hedge to par some of your loses on your long term investments.

I’m using Degiro for the first time where I’ve brought a few hundred quids worth of SUK2 which is a 2 x leveraged short of the FTSE 100

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