2008 Press Releases

FOLIOfn Launches Bear Market Folios Designed to Increase in Value as Market Declines


VIENNA, Virginia – FOLIOfn, Inc., the innovative online brokerage firm and provider of investment products, launched three Bear Market Folios last month, which are designed to increase in value as the broad market declines (and vice-versa). The Folios are comprised of a variety of inverse mutual funds and ETFs.

No portfolio will perform well in all markets. However, for every 1% decline in the broad market’s value, the Bear Market 1X Folio is designed to gain about 1% in value; the Bear Market 1.5X Folio is designed to gain about 1.5%; and the Bear Market 2X Folio is designed to gain about 2% in value. Because these Folios are designed to go up as the market goes down, they are also expected to go down as the market goes up. Thus, if the market goes up 1%, the Bear Market 1X Folio will likely lose 1% in value, the Bear Market 1.5X will lose 1.5%; and the Bear Market 2X will lose 2%.

Investors can use these Folios to be in the market when they believe the broad markets are likely to decline. These Folios could also be used by investors as a short-term hedge in cases where an investor’s other assets are exposed to the moves of the broader market.

A white paper discussing the theory and construction of FOLIOfn’s Bear Market Folios—written in an easy-to-understand and informative way—can be found at FOLIOfn’s website.

About Folio Investing

Folio Investing, a division of FOLIOfn Investments, Inc., is an online brokerage that enables investors to manage stocks, ETFs, and mutual funds as integrated investment portfolios called “Folios” that deliver better control, greater transparency, and lower cost. Investors can create their own Folios, much like creating personalized ETFs or mutual funds, or invest in over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. The Folio Unlimited Plan features unlimited commission-free trading in twice-daily windows for only $29 a month or $290 a year. Ready-to-Go Folios can be managed or unmanaged, are not registered investment companies, and are offered by FOLIOfn Investments, Inc., a registered broker-dealer. FOLIOfn Investments, Inc. does not provide investment, tax, or legal advice. FOLIOfn Investments, Inc., is a member of FINRA/SIPC.