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long and short US stocks in a SIPP

Investment discussion for beginners. Why you should invest your money, get help getting started
Peatfish
Posts: 1
Joined: March 23rd, 2022, 10:02 pm

long and short US stocks in a SIPP

#488716

Postby Peatfish » March 23rd, 2022, 10:16 pm

Hi

I want to long and short US stocks and ETFs within either an ISA or a SIPP

I'm not sure that it's possible within an ISA?

Any suggestions about how this can be done and/or provider recommendations would be very much appreciated

I will be looking to make a minimum of say 3 trades per week, therefore, low fees are preferable


Cheers

GoSeigen
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Re: long and short US stocks in a SIPP

#488747

Postby GoSeigen » March 24th, 2022, 7:10 am

I use XSPS (Xtrackers S&P 500 Inverse Daily Swap UCITS ETF) to go short of the S&P500 index. It can be held in an ISA. There are undoubtedly similar EFTs for long trades and for the DOW, Russell, etc so start with XSPS and see what you can find.


GS

BT63
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Re: long and short US stocks in a SIPP

#489001

Postby BT63 » March 24th, 2022, 9:18 pm

Peatfish wrote:Hi

I want to long and short US stocks and ETFs within either an ISA or a SIPP

I'm not sure that it's possible within an ISA?

Any suggestions about how this can be done and/or provider recommendations would be very much appreciated

I will be looking to make a minimum of say 3 trades per week, therefore, low fees are preferable


Cheers


I have a few thoughts:

1. What is your level of experience?

2. In the long run, shorting is going against the tendency for markets to move higher (although I agree that I think recession is arriving and stock markets especially in the US potentially have a long way to fall over the next few years but it's possible inflation could be high enough that stock markets grind sideways yet decline by 10% p.a. after inflation is taken into account).

3. Often other assets such as bonds or gold have a low or even negative correlation with stock markets, therefore can achieve an effect similar to shorting the stock markets yet still trend higher and make money over the long term unlike a constant short position which is a losing trade over the long term.

4. About three quarters of 'traders' lose money over the medium to long term. Most long-term-buy-and-hold investors make money over the long term.


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