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 of market. [click to continue…]
The first half of 2011 is officially in the books, and many investors find their portfolios in approximately the same place as they were to start the year (though a furious rally in the final week of the quarter gave a nice boost at an opportune moment). Most major equity indexes are up slightly on [...]
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 [...]
As each week seemingly brings multiple new product launches, the ETF industry’s product pipeline continues to refill. Issuers continue to get creative in their efforts to expand their product lineups, laying the groundwork to launch products not currently available in the ETF wrapper. One of the latest filings to hit the SEC’s desk came from [...]
Although there are now nearly 1,100 exchange-traded products available to U.S. investors, the universe of ETFs utilized by most long-term buy-and-holders is considerably smaller. Beyond the “plain vanilla” portfolio building block ETFs, recent years have seen the introduction of hundreds of more targeted and complex ETPs that offer exposure to exotic asset classes and regions [...]
It doesn’t seem like all that long ago that investors around the world were bracing for the fallout from massive stimulus plans implemented to lift the global economy out of a recession. The consensus opinion was that the increase in global money supply stemming from billion dollar capital injections would put firm upward pressure on [...]
All eyes on Wall Street will shift on Tuesday towards Washington, where the latest meeting of the Federal Reserve promises to shed some light on the central bank’s view of the ongoing recovery and any plans to give the U.S. economy an extra push heading into the final quarter of the year. Though the drama [...]
July saw a flurry of activity in the ETF industry, with almost a new fund for every trading day during the month. The surge in new products continues to be driven by innovation rather than duplication; many of the ETFs to hit the market last month were the first of their kind, including unique international [...]
PowerShares and Deutsche Bank have expanded their ETF partnership, rolling out a pair of 3x leveraged ETNs offering amplified exposure to long-term Treasuries. The two products, which started trading on Wednesday, include:
