SIE (Securities Industry Essentials) Practice Exam

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Which of the following would NOT be profitable in a rising market?

Call options
Bull market funds
Inverse ETFs
Real estate investment trusts

The correct answer is: Inverse ETFs

In a rising market, investors expect prices to increase, which benefits buyers of call options and bull market funds. Inverse ETFs are designed to move in the opposite direction of the market, so they would not be profitable in a rising market. Real estate investment trusts (REITs), on the other hand, are not affected by the stock market and their profitability depends on the real estate market, making D an incorrect option.