Mutual funds that place bets against the market by shorting stocks are doing better than typical, long-only funds. Mutual funds that short stocks take on different levels of risk, using various derivatives, such as futures, to protect the bets taken against indexes.

Funds in MorningstarÂ’s bear-market category have increased 9% this year, while the S&P 500 index has fallen 12.7% and typical U.S. stock funds have dropped 11.2%.

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