Profund’s Short Small-Cap fund – SHPIX - is an bear market fund that provides exposure to the Russell 2000.  The “inverse” nature of the fund means that it will increase in value when the Russell 2000 falls and decrease in value when the index rises.

If the Short Small-Cap fund successfully meets its objectives, the fund will increase in value by 1% for every 1% drop in the Russell 2000.  In order to achieve the fund’s objectives, the managers invest in financial instruments that should have a similar daily return as the inverse of the index.  These instruments include short futures and options contacts.