(New York)

Looking at the market’s performance, it is probably a good time to short some shares. The majority of gains for the sector are being driven by a handful of high-flying tech shares, but the majority of stocks are doing much. Therefore, it seems like a good bet to short certain under-performing sectors. However, the options for doing so aren’t great, as the majority of short ETFs cover the whole market or are heavily leveraged. Now there is a new option though, the AdvisorShares Dorsey Wright Short ETF. The ETF shorts only the market’s 80 to 100 weakest mid and large caps, and it is one of only four short ETFs that don’t seek to replicate an index’s return.

FINSUM: This seems like a very good application of the smart beta concept.