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I don't think shorting would be a very good strategy for passive, long term investors due to the associated costs (margin, dividend payments) and the unlimited

I don't think shorting would be a very good strategy for passive, long term investors due to the associated costs (margin, dividend payments) and the unlimited risk.

hendzen 9y ago
There isn't unlimited risk because the exposure to tech is hedged out by the opposing long/short positions (as are the dividend payments). Agreed that this isn't practical for the average investor though.
- deleted 9y ago
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- jameslk 9y ago
  Are they tracking the same tech stocks in a proportion that cancels out?
  - hendzen 9y ago
    Yes, $XLK tracks the technology sector components of the SP500.