From the category archives:

Leveraged ETFs

ProShares continued to build out its suite of leveraged and inverse bond ETF offerings, debuting two new products on Thursday that offer leveraged exposure to corporate bonds. Those new additions to a rapidly-expanding ETF product lineup include options for investors seeking amplified exposure to both investment grade and high yield corporate debt.  [click to continue…]

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After seemingly losing interest in 2010, investors have resumed pouring money into commodity ETFs in 2011; both broad-based basket funds and resource specific products have grown as these products have come back into style. Precious metals have without a doubt been the hottest corner of the commodity ETF market, as investors have embraced the exchange-traded structure as an efficient means of accessing an asset class that has the potential to act as both an inflation hedge and a safe haven. There are currently 20 ETFs in the Precious Metals ETFdb Category, including options for silver, platinum, palladium, and even broad-based exposure to a basket of metals. But many of the products–accounting for the vast majority of assets–are focused on gold. In addition to the ultra-popular GLD and cost efficient IAU, there are now ETF options for investing in gold vaulted in Switzerland or stored in Singapore. There’s even an ETN that oscillates between exposure to gold and cash depending on momentum factors, presenting a simplified way for trend followers to gain exposure to bullion [see When ETNs Are Better Than ETFs]. [click to continue…]

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Direxion, one of the largest issuers of 2x and 3x leveraged ETFs, announced the launch of three products offering daily inverse exposure to fixed income benchmarks. The new -1x Direxion ETFs include:

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ETFs have been praised for improving the investing experience in a number of different ways. They have been the catalyst for a shift towards low cost indexing strategies, and have placed strong downward pressure on management fees throughout the investing landscape. They have improved tax efficiencies and intraday liquidity, allowing investors to move in and [...]

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One of the biggest stories in the ETF world over the past year has been the rise of free trading partnerships between a number of the country’s biggest online brokerage houses and ETF issuers. TD Ameritrade and Fidelity are among the firms that have rolled out programs offering commission-free ETF trading on select funds; Fidelity [...]

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FactorShares, a new entrant to the ETF industry, has launched a suite of leveraged products designed to offer investors exposure to the differentials in daily returns between various asset classes. The new leveraged funds will give investors an opportunity to bet that one asset class will increase in value relative to another over a single [...]

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ProShares, the largest issuer of short and leveraged exchange traded funds, announced the launch of the first product offering leveraged inverse exposure to U.S. Treasury Inflation-Protected Securities (TIPS) yesterday. ProShares added to its lineup the UltraShort TIPS ETF (TPS), bringing their total number of funds up to 115, covering investment strategies from inverse equities to [...]

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Direxion, one of the leading issuers of leveraged ETFs, announced reverse splits for six of its 3x bear funds. Five of the leveraged products will undergo 1-for-5 reverse splits for shareholders of record after the close of the markets on Wednesday, Feb. 23, 2011: Daily Financial Bear 3x Shares (FAZ) Daily Large Cap Bear 3x [...]

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The holiday cheer that’s been lifting the markets this month seems to be tapering off, with the Dow Jones Industrial Average taking a pause from its December surge and falling off its multi-month highs on Monday. Equities across the globe tumbled lower as a whole, with markets reacting negatively to China’s decision to increase interest [...]

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As the popularity of ETFs has surged in recent years, the manner in which investors use these vehicles has evolved as well. Originally designed with cost-conscious buy-and-holders in mind, ETFs have now been fully embraced by more active traders as well (just look at the turnover of SPY). And recent years have seen the introduction [...]

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iPath, the largest issuer of exchange-traded notes in the U.S., announced a major addition to its product lineup on Tuesday by rolling out 11 new leveraged ETNs. The new products included five paired products offering leveraged exposure to benchmarks underlying some of the most popular exchange-traded products, including the S&P 500, Russell 2000, and MSCI [...]

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In recent years, few corners of the investing world have been the subject of as much controversy, misinformation, and confusion as the leveraged ETF space. Last summer these securities received widespread coverage from the financial media, much of it either implying directly or alleging that leveraged ETFs were flawed investment vehicles designed to dupe average [...]

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