If you listen to the real estate news, the world has melted, the crooks are off the hooks and nothing is left.

Hold that thought a little. Remember what is the number one question you should ask yourself when you read the news? “Who benefits from this?” In this case, Seeking Alpha’s Ryan Freund finds one ETF that profits from the slumping market.

When real estate exploded in 2000, many prospective homeowners bought beyond their range, current homeowners refinanced, and real-estate investors speculated as if their was no ceiling. In order to keep everyone happy, ever more sophisticated loan options cropped up, ARMs, etc. Anyone with a pulse could buy something over what they could afford. After all, they would make a profit, right? You know the rest of the story, look around today in the newspapers.

So who is coming on top now? One ETF (Exchange Traded Fund) that has been doing very well is the Ultra Short Financials Proshares (AMEX: SKF). For those who don’t know, an ETF trades like a stock, and is a hybrid between a stock and a fund. And yes, my wife works in that field, that’s why I am somewhat knowledgeable.

According to Ryan: “For every 1% the financial industry goes down, this ETF goes up 2%. In the past year, this stock has boasted more than a 40% return, doubling the loss of 20% for the financial industry.”

There you go, not everything is bad news. The trick is to look elsewhere when things go South.