ETF Database » Leveraged ETFs

101 ETF Lessons Every Financial Advisor Should Learn

Michael Johnston — Wed, 23 May 2012 12:00:06 +0000

Exchange-traded funds (ETFs) have burst on to the scene in the last few years, raking in hundreds of billions of dollars in assets and prompting a major shift towards indexing strategies in the process. ETFs have empowered financial advisors (FAs), registered investment advisors (RIAs), Chief Financial Officers (CFOs), money managers, and retail investors to take greater control over their portfolios, pushing down fees and maxing out tax efficiency in the process. While ETFs appear quite simple on the surface, these securities can be quite complex. In order to get the most out of ETFs, there’s a lot that investors need to know about the structure, opportunities, and limitations of these securities. Below we outline just about everything you need to know about ETFs, from the basics to the more sophisticated aspects of these products. 1. ETFs Are Tax Efficient One of the biggest advantages of ETFs is their tax-efficient structure; [...]

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Hitchhiker’s Guide To The ETF Galaxy

Michael Johnston — Mon, 14 May 2012 13:00:23 +0000

At times, it seems as if the number of ETFs available to U.S. investors will soon exceed the number of stars in the sky. That might be overstating things a bit, but the pace of expansion in the ETF industry has truly been impressive over the last several years. With multiple products seemingly debuting every week and very few shutting down (despite countless predictions to the contrary), the size of the ETF lineup has effectively doubled in a relatively short period of time. And there’s no indication that the product development front is going to be slowing down any time soon; issuers continue to file for both innovative and duplicative products, producing a pipeline full of hundreds of funds that could debut at some point in the next several months [see also 3 ETFs For A Euro Zone Double-Dip]. The proliferation of ETFs, ETNs, and other exchange-traded cousins of these [...]

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Short ETFs: Everything You Need To Know

Michael Johnston — Mon, 23 Apr 2012 13:00:25 +0000

As the ETF universe has expanded by leaps and bounds in recent years, investors now have tools at their disposal to accomplish almost every objective. From plain vanilla stock and bond indexes to hyper-targeted regional and sector funds, there are ETFs to bet on just about every asset class. And there are also a number of ETFs that can be used to bet against certain asset asset classes, which can be powerful tools for turning a profit in the types of environments that generally bring a sea of red ink to portfolio statements. Inverse ETFs, also known as short ETFs, have become extremely popular for a wide variety of objectives, including as hedging tools and vehicles for speculating on declines in value [see Free Report: How To Pick The Right ETF Every Time]. Short ETFs 101 Short or inverse ETFs generally seek to deliver results that correspond to the inverse, [...]

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ProShares Adds -3x Treasury ETF (TTT)

Michael Johnston — Tue, 03 Apr 2012 10:00:14 +0000

ProShares announced last week an expansion to its lineup of 3x leveraged ETFs, rolling out a fund that delivers -3x daily exposure to long-term U.S. Treasuries. The new UltraPro Short 20+ Year Treasury (TTT) will seek to deliver daily results that correspond to -300% of movements in the Barclays Capital U.S. 20+ Year Treasury Index, a benchmark comprised of long-dated debt obligations of the U.S. government. The new ETF is linked to the same index as the extremely popular UltraShort 20+ Year Treasury (TBT), which offers -2x daily exposure to long-term Treasuries. That ETF, which debuted about four years ago, has become one of the most popular leveraged bond ETFs out there; TBT has more than $3.5 billion in assets and trades about 12 million shares on an average day. TTT In Focus Because the underlying index consists of Treasuries with at least 20 years remaining until maturity, TTT can be [...]

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UBS Launches Leveraged Real Estate ETN (RWXL)

Michael Johnston — Thu, 22 Mar 2012 11:00:10 +0000

UBS continued to expand its lineup of monthly leveraged ETPs this month, debuting a product that is designed to deliver amplified exposure to international real estate firms. The new Monthly Pay 2x Leveraged Dow Jones International Real Estate ETN (RWXL) will deliver leveraged exposure to a benchmark that consists of REITs from around the world, excluding the U.S. The new ETN will offer monthly exposure to the underlying index, meaning that the note will be expected to deliver monthly results and yields that correspond to 200% of those of the target benchmark [see also Are U.S. REIT ETFs A Buy In 2012?]. Under The Hood RWXL will seek to deliver 2x leveraged exposure to the same index to which the SPDR Dow Jones International Real Estate ETF (RWX) is linked. That fund has about 125 individual securities, with the largest allocations going to Westfield Group (7.1%), Unibail-Rodamco (6.2%), and Brookfield [...]

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How To Play A Treasury Bubble With ETFs

Stoyan Bojinov — Mon, 19 Mar 2012 13:00:34 +0000

U.S. Treasuries were the talk of the town in 2011 as this asset class shielded investors from the rampant volatility that ripped through equity markets as debt woes on both sides of the Atlantic ocean intensified. However, encouraging economic data releases on the home front have paved the way higher for stocks in recent months, leading some to believe that government bonds may be floating in overbought territory [see also 3 ETF Trades For The Next Euro Zone Debt Crisis]. Recent developments in the Euro zone have further bolstered confidence that the global economic recovery can and will persevere despite overarching risks. As the cloud of uncertainty looming over financial markets slowly disperses, many are left wondering if U.S. Treasuries can retain their appeal in an improving economic environment. In a recent article in BusinessInsider.com, author Joe Weisenthal offers a compelling take on the current state of the domestic government bond market. Weisenthal cites [...]

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ProShares, iShares Fill ETF Pipeline

Stoyan Bojinov — Fri, 09 Mar 2012 12:00:52 +0000

Resurfacing fears surrounding the Greek bailout tipped markets south early in the week, although an optimistic outlook for Friday’s U.S. unemployment report has helped to ease uncertainties. Nevertheless, tumultuous trading throughout the week hasn’t been able to slow down activity on the product development front. Industry giants ProShares and iShares have laid out plans to launch a slew of products targeting everything from leveraged financials to sovereign bonds. iShares is planning to launch two fixed income ETFs along with an intriguing product that could appeal to socially responsible investors: iShares Sovereign Screened Global Bond Fund: This ETF will seek to generate current income while striving to mitigate downside risk by investing principally in global debt obligations [see SEC Filing]. Underlying holdings will consists of bonds denominated in local currencies and the U.S. dollar, issued by government in developed as well as emerging market countries. The fund will utilize a model-based proprietary investment process to select securities and assign allocations [see [...]

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VelocityShares Launches 8 Leveraged ETNs

Michael Johnston — Thu, 09 Feb 2012 11:00:43 +0000

VelocityShares has significantly increased its leveraged ETP lineup, recently announcing eight new products that offer amplified exposure to various natural resources. The new ETNs will offer 3x and -3x exposure to natural gas, crude oil, and Brent crude, as well as 2x and -2x products targeting indexes comprised of copper futures. The new ETNs will join a VelocityShares lineup that already includes products offering leveraged exposure to gold (UGLD, DGLD), silver (USLV, DSLV), platinum (LPLT, IPLT), and palladium (LPAL, IPAL). Each of the products will be lined to indexes comprised of futures contracts on the underlying commodities, and each will be structured as exchange-traded notes issued by Credit Suisse. That means that investors will be exposed to the credit risk of the issuing institution, but will avoid the tracking error that can become significant in futures-based products that utilize leverage. Ticker Name DOIL 3x Inverse Brent Crude ETN linked to [...]

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Five Leveraged ETFs Delivering Big Gains

Michael Johnston — Tue, 31 Jan 2012 12:00:08 +0000

Despite some rather significant bumps along the road in 2011, many asset classes are now well into positive territory on a one year trailing basis as January draws to a close, riding high thanks to a strong finish to last year and start to 2012. Included on that list are a number of leveraged ETFs that seek to amplify exposure to various asset classes, highlighting the potential to use these products to capture attractive returns over extended periods of time [see also Leveraged ETFs FAQs]. That might come as a bit of a surprise to some investors, as there remains a bit of a misconception over the performance attributes of leveraged ETPs that are held for multiple months. While there exists the potential for “return erosion” related to the resets of exposure in volatile markets, it is certainly possible for leveraged products to deliver big returns when held throughout any type [...]

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Direxion’s 2x ETFs Becoming 3x ETFs

Michael Johnston — Mon, 28 Nov 2011 14:00:39 +0000

Direxion, one of the largest issuers of leveraged exchange-traded funds, will make significant changes to ten of its products next week. The Direxion ETFs currently offering 2x and -2x exposure to their underlying index will begin seeking to deliver daily results that correspond to 3x or -3x of the related benchmark. That change will obviously increase the volatility of these products, and will also have an impact on margin requirements for investors with positions in these funds. The changes affect five pairs of products, including leveraged ETFs focusing on BRIC stocks, Indian equities, gold miners, natural gas firms, and retail companies: Ticker Previous ETF Name New ETF Name BRIL Daily BRIC Bull 2x Shares Daily BRIC Bull 3x Shares BRIS Daily BRIC Bear 2x Shares Daily BRIC Bear 3x Shares INDL Daily India Bull 2x Shares Daily India Bull 3x Shares INDZ Daily India Bear 2x Shares Daily India Bear [...]

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ETF Database » Leveraged ETFs

101 ETF Lessons Every Financial Advisor Should Learn

Related Posts:

Hitchhiker’s Guide To The ETF Galaxy

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Short ETFs: Everything You Need To Know

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ProShares Adds -3x Treasury ETF (TTT)

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UBS Launches Leveraged Real Estate ETN (RWXL)

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How To Play A Treasury Bubble With ETFs

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ProShares, iShares Fill ETF Pipeline

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VelocityShares Launches 8 Leveraged ETNs

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Five Leveraged ETFs Delivering Big Gains

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Direxion’s 2x ETFs Becoming 3x ETFs

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