ETF Database » BGZ

Five ETF Strategies For A Sideways Market

Michael Johnston — Fri, 10 Jun 2011 14:00:56 +0000

Most investors have a pretty good idea which ETFs will perform well in bull markets (generally any type of risky asset, including equities and commodities) and which will perform well in bear markets (low risk bonds and inverse equity ETFs, among other asset classes). But finding products that have the potential to deliver meaningful gains when equity markets are moving sideways can be a more challenging task. The very nature of such an environment eliminates the vast majority of equity ETFs, and bond funds are also unlikely to show much movement when equities move along sideways. A 0% return on a portfolio is obviously preferable to the losses many experienced in 2008, but no growth can be tough to swallow. No one sets up a portfolio expecting it simply to tread water, and those with little in the way of patience may be frustrated by investments that simply spin their [...]

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Six Direxion ETFs To Undergo Reverse Splits

Michael Johnston — Wed, 02 Feb 2011 18:00:22 +0000

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 Shares (BGZ) Daily Mid Cap Bear 3x Shares (MWN) Daily Developed Markets Bear 3x Shares (DPK) Daily Semiconductor Bear 3x Shares (SOXS) Additionally, the Daily Small Cap Bear 3x Shares (TZA) will undergo a reverse 1-for-3 split. Each of the six ETFs will be assigned a new CUSIP following the reverse splits. Disclosure: No positions at time of writing. Click here to read the original article on ETFdb.com.Related Posts:March ETF Roundup: Launches, Filings, and ClosuresHow To Fix the Leveraged ETF MessResponding To Calls For ETF RegulationDirexion Brings 3x Leveraged ETFs To EuropeProShares Plans 300% Leveraged [...]

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ETF Ideas For A Flat Market

Jared Cummans — Mon, 16 Aug 2010 14:44:44 +0000

This year has been a frustrating one for investors, as equity markets came racing out of the gate only to lose steam as much anticipated job creation failed to materialize and much of the developed world found itself facing a massive credit crunch. Every development that seemingly indicates a robust recovery–such as the impressive earnings season–is quickly followed by more discouraging news to keep markets in check. Major U.S. indexes have spent part of 2010 well into positive territory while also dipping deep into the red, currently standing about even on the year. As the summer months draw to a close, many investors are beginning to predict that more sideways movement is in the forecast. There is a growing feeling that while there is not enough fuel for a upside rally, the situation is also not so bleak as to bring on a double dip recession. That creates a unique [...]

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March ETF Roundup: Launches, Filings, and Closures

Seth Dowling — Thu, 01 Apr 2010 16:02:54 +0000

After a few speed bumps early in 2010, ETFs are back on track and traveling full steam ahead. In the first three months of 2010, nearly 60 new ETFs have been launched, which is already equivalent to nearly half funds to hit the market over the course of 2009. The recent SEC decision to halt approval on products using derivatives may slow this pace a bit, but April promises to be another very active month for new ETF launches. Below, we highlight some of the most interesting new funds hitting the market. New ETFs Highlights from the ETF industry in March include: Claymore, best known for themed ETFs and targeted sector funds, mixed things up when by releasing three new ETFs based on broad market indexes. The new funds include the Wilshire 5000 Total Market ETF (WFVK), Wilshire 4500 Completion Index ETF (WXSP), and Wilshire U.S. REIT ETF (WREI). Following the launch of 3x funds earlier in the year, Direxion hit [...]

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Direxion Brings 3x Leveraged ETFs To Europe

Michael Johnston — Wed, 31 Mar 2010 14:44:28 +0000

Direxion, the pioneer of 3x and -3x daily leveraged ETFs in the U.S., is going international. Beginning on March 31, six Direxion Shares Daily ETFs will be listed on the Amsterdam market of NYSE Euronext, significantly expanding the base of investors with access to these products. The Direxion ETFs available on this market include daily 3x and -3x ETFs targeting the MSCI Emerging Markets Index, Russell 1000 Index, and Russell 1000 Financial Services Index: Daily Emerging Markets Bull 3x Shares (EDC) Daily Large Cap Bull 3x Shares (BGU) Daily Financial Bull 3x Shares (FAB) Daily Emerging Markets Bear 3x Shares (EDZ) Daily Large Cap Bear 3x Shares (BGZ) Daily Financial Bear 3x Shares (FAZ) Each of these products is already listed in the U.S., and all but one of them trade under the same ticker symbol stateside (the 3x bull financial fund is listed as “FAS” in the U.S.). It’s [...]

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How To Fix the Leveraged ETF Mess

Michael Johnston — Fri, 26 Jun 2009 11:00:28 +0000

Leveraged ETFs have quickly become the hot-button issue in the ETF industry, dividing investors and observers into two distinct camps. On the one side are sophisticated day traders who believe these funds, which use derivatives and other complex financial instruments to provide amplified daily returns on a target index, are the greatest thing since sliced bread. And on the other are those who accuse these ETFs of being fundamentally dishonest in nature – products that, in the words of legendary investor Jack Bogle, “verge on insanity.” Personally, I fall somewhere in between, believing that leveraged ETFs can be an incredibly powerful tool for sophisticated investors, but acknowledging that there exists the potential for these funds to be used in a detrimental manner by investors unaware of exactly how they function. And while I’m generally inclined to let things be, it’s becoming increasingly clear that this issue will not be going away any time soon [...]

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ProShares Files For More Leveraged Funds: Will The SEC Oblige?

Michael Johnston — Thu, 25 Jun 2009 05:05:56 +0000

ProShares, known for pioneering short and 2x leveraged and inverse leveraged ETFs, is once again blazing a new trail in the ETF industry. The fund family has filed for approval from the SEC to launch two new ETFs, a 3x S&P 500 fund and a 3x inverse S&P 500 fund. ProShares‘ proposed funds would be the first to offer leveraged ETF exposure to the S&P 500. ProShares is largely regarded as the market leader in the leveraged ETF arena, with dozens of funds offering 200% leverage (as well as 200% inverse leverage) on many popular indexes. Over the last year, however, ProShares has watched rival Direxion introduce numerous successful 300% funds, attracting significant inflows from the most sophisticated and adventurous investors. Now ProShares is looking to give Direxion a fight for day trader cash by offering leveraged exposure to one of the most widely-reported indexes in the world. Direxion already offers 3x [...]

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Responding To Calls For ETF Regulation

Michael Johnston — Tue, 16 Jun 2009 05:30:35 +0000

In the week during which the Obama administration will unveil details surrounding its plan to revamp the regulation of the U.S. financial sector, calls for increased oversight of the ETF industry are picking up steam as well. Scott Burns, director of ETF Analysis at Morningstar, recently laid out a case for increased regulatory requirements for ETFs that use derivatives to achieve their objectives. But I’m not quite convinced that more regulation is the answer. In The Beginning… The first ETFs were equivalent to “plain vanilla” financial instruments, tracking well-known equity and fixed income indexes by duplicating their underlying holdings. Even today, the simplest ETFs remain among the most popular – the indexes tracked by the largest ETFs by market capitalization should be familiar to almost all investors. But as the ETF structure became more familiar and investors became more educated on the advantages of ETFs relative to traditional mutual funds, the [...]

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Grading Leveraged ETF Performance

Michael Johnston — Thu, 11 Jun 2009 14:39:09 +0000

Leveraged ETFs are among the most actively-traded securities on any market in the world today, with some turning over several times daily and maintaining average investor holding periods of less than an hour. And their popularity appears to be on the rise, as these funds regularly top the list of monthly ETF inflows released by the National Stock Exchange. The amount of interest in these funds certainly isn’t surprising – the temptation to double or even triple the daily returns of a well-known benchmark is tempting, especially for day traders who make their living moving in and out of positions with a frequency that would make most buy-and-hold investors faint. But to generate amplified returns, leveraged ETFs utilize a number of complex strategies that don’t always ensure perfect results. But just how close do they come? All in a Day’s Work In evaluating the ability of leveraged ETFs to accomplish their [...]

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