ETF Database » Leveraged ETFs

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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Direxion Fills Up Leveraged ETF Pipeline

Stoyan Bojinov — Fri, 11 Nov 2011 11:00:29 +0000

Direxion laid the groundwork for several new products in a recent SEC proposal, including a handful of sector ETFs as well as an international equity offering. The Boston based issuer detailed plans to potentially ramp up its product lineup with four new 3x leveraged bull-bear pair ETFs. Triple-exposure products are the bread and butter of Direxion, which was the first firm to specialize in the leveraged and inverse corners of the exchange-traded universe back in 2008. In a recent SEC Filing, Direxion filed a proposal for eight new funds, focusing on the industrials sector along with gold and silver miners. The filing also included plans for Direxion to expand the geographic scope of its current product lineup with a proposed bull-bear pair of international ETFs offering exposure to Turkey. The proposed funds are listed below and all are expected to feature annual expense fees of 0.95%: Direxion Daily Turkey Bull [...]

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VelocityShares Debuts Leveraged Precious Metals ETNs

Michael Johnston — Tue, 18 Oct 2011 09:00:01 +0000

VelocityShares, the issuer behind several popular ETNs linked to volatility-based indexes, made a big expansion to its product lineup this week with the launch of eight notes offering leveraged exposure to various precious metals. The new additions include both long and inverse offerings covering gold (3x), silver (3x), platinum (2x), and palladium (2x). Each of the new products is a first-to-market offering; the gold and silver ETNs represent the fist time 3x daily exposure has been available to those metals, while the platinum and palladium products are the first to offer leveraged or inverse exposure to those metals [for analysis of all new ETFs, sign up for the free ETFdb newsletter]: Ticker ETF Index UGLD 3x Long Gold ETN S&P GSCI Gold Index (300%) DGLD 3x Inverse Gold ETN S&P GSCI Gold Index (-300%) USLV 3x Long Silver ETN S&P GSCI Silver Index (300%) DSLV 3x Inverse Silver ETN S&P [...]

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ProShares Debuts Geared Natural Gas ETFs

Michael Johnston — Mon, 10 Oct 2011 11:00:01 +0000

ProShares, the largest issuer of geared ETFs that has made a push into the alternatives space, adding two more products to its lineup late last week. The new Ultra DJ-UBS Natural Gas (BOIL) and UltraShort DJ-UBS Natural Gas (KOLD) are both linked to the Dow Jones-UBS Natural Gas Subindex, a benchmark that consists of natural gas futures contracts. BOIL will seek to deliver daily results that correspond to 200% of the change in the underlying index, while KOLD will target -200% of the daily returns of the benchmark. With the launch of the two new products ProShares now offers ten leveraged commodity funds, including ETFs linked to gold (UGL, GLL), silver (AGQ, ZSL), crude oil (UCO, SCO), and a broad basket of natural resource futures (UCD, CMD). “There has been strong demand for geared commodity ETFs, as investors have come to recognize the importance of commodities as part of their [...]

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UBS Rolls Out Leveraged Cloud Computing ETN (LSKY)

Michael Johnston — Thu, 06 Oct 2011 11:00:18 +0000

UBS continued an aggressive expansion of its lineup of exchange-traded notes this week, debuting a product offering leveraged exposure to a hot corner of the technology sector. The launch of the ETRACS Monthly 2x Leveraged ISE Cloud Computing TR Index ETN (LSKY) comes exactly three months after First Trust debuted an ETF linked to the same index; SKYY began trading in early July. The new UBS ETN will seek to deliver monthly results that correspond to 200% of the change in the ISE Cloud Computing Index, a benchmark that consists of about 40 stocks. Cloud Computing 101 Cloud computing is a relatively new technology that is expected to grow quickly in coming years. Generally, cloud computing refers to the concept of sharing resources and software over the Internet. Basically, it allows end users to access data and storage services without being physically connected to the system that is delivering the [...]

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iPath Debuts IVO Successor

Michael Johnston — Tue, 20 Sep 2011 11:00:01 +0000

After announcing the automatic termination last week of the Inverse January 2021 S&P 500 VIX Short-Term Futures ETN (IVO), iPath was quick to roll out a successor fund that will maintain a generally similar investment objective. Monday marked the first day of trading for the Inverse S&P 500 VIX Short-Term Futures ETN (IVOP), which will offer inverse exposure to an index comprised of daily rolling positions in first and second month VIX futures contracts. The new ETN will mature in September 2021, and will also feature an automatic redemption trigger at $10 per share (shares in IVOP began trading at $20). IVO hit the $10 level last week, triggering a redemption of the notes by Barclays. Earlier this year, Barclays also redeemed its Long Enhanced S&P 500 VIX Mid-Term Futures ETN (VZZ) and subsequently issued VZZB, which offers generally similar exposure. Under The Hood: Inverse VIX ETFs The new ETN [...]

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This Week In ETFs: July 17th Edition

Stoyan Bojinov — Sun, 17 Jul 2011 11:00:05 +0000

Earnings season kicked off last week , but even corporate performance wasn’t enough to distract investors from the financial woes at home and overseas. Moody’s downgrade of Ireland to junk status sent waves of panic across the financial markets as investors speculated that Italy would be the next. Ben Bernanke’s testimony to Congress sparked a rally on Wall Street, but a sell-off followed on Wednesday and bled into Thursday. Gold and Google investors had a reason to celebrate this weekend as the precious metal marched to new all-time highs, with August futures prices hitting $1,594 an ounce on Thursday, while the Internet giant surged upwards of 13% on Friday after reporting stellar earnings. After a couple of slow weeks on the product development front, the ETF industry resumed its impressive growth trajectory this week with the debut of several new products. The most recent additions to the ETF lineup included [...]

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Inside The 8x Leveraged ETN

Michael Johnston — Tue, 12 Jul 2011 14:00:51 +0000

Innovation has been on display in the ETF industry in recent years, as various issuers have been active on the product development front in their efforts to bring new and exciting products to market. One area that has seen tremendous growth is the leveraged ETF space; investors have embraced the exchange-traded structure as an efficient means of amplifying exposure to everything from Chinese stocks (YINN, YANG) to gold (UGL, GLL) to long-term Treasuries (TBT, UBT). In total, there are nearly 200 leveraged ETPs, covering dozen of different asset classes. But not all leveraged exchange-traded products utilize the same structure; there are some nuances across the roster of these funds that can have a significant impact on the risk/return profile offered. Most investors are aware of the differences between ETFs and ETNs, including distinctions in credit risk, tracking error, and sometimes tax ramifications as well. But some don’t realize that the [...]

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ETF Database » Leveraged ETFs

VelocityShares Launches 8 Leveraged ETNs

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Direxion’s 2x ETFs Becoming 3x ETFs

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VelocityShares Debuts Leveraged Precious Metals ETNs

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ProShares Debuts Geared Natural Gas ETFs

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UBS Rolls Out Leveraged Cloud Computing ETN (LSKY)

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iPath Debuts IVO Successor

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Inside The 8x Leveraged ETN

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