ETF Database » DGL

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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Among Gold ETFs, Bigger Isn’t Always Better

Michael Johnston — Thu, 25 Aug 2011 11:00:47 +0000

As the roster of exchange-traded products has grown to nearly 1,300, many investors find themselves with the luxury of multiple options for establishing a position in a desired asset class. There are, for example, four different pharmaceutical ETFs, three homebuilder funds, and even two choices for playing the automotive industry. Once the ETF universe has been whittled down to funds that fit a given investment objective, there are a number of strategies for determining which of the candidates represents the most efficient way to play. It makes sense, for example, to compare ETFs on the basis of expenses, depth of holdings, liquidity, and tracking error. But many investors are much more basic in their assessments; there is a tendency among ETF investors to gravitate towards the biggest products in favor of smaller or lesser-known funds. If bigger is indeed better, this approach should work well; the size of a product [...]

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Commodity ETFs: It Takes Two To Contango

Jared Cummans — Fri, 24 Jun 2011 11:00:25 +0000

Futures-based investing has long been a popular option for those looking to gain exposure to commodities that were otherwise difficult to reach. But with the introduction of ETFs came increased granularity in this investing segment, as there are now exchange traded products that offer exposure to a wide variety of commodities through a single ticker. This alleviates the stress and complexities that are involved with managing a futures account, while allowing investors to sometimes gain access to multiple commodity futures with just one fund. Still, for everything that ETFs have opened up for the everyday investor, these funds are by no means perfect. The biggest issue with numerous futures-based funds is contango. When futures markets are contangoed–near month futures are cheaper than those expiring further into the future–the roll process can mean selling low and buying high, thereby creating some significant headwinds for investors. Exchange traded commodity products are powerful [...]

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For ETF Investors, The Details Matter (Part II)

Michael Johnston — Mon, 17 Jan 2011 15:00:02 +0000

Last week we highlighted several often-overlooked nuances of popular exchange-traded products, detailing the surprisingly large impact that seemingly minor distinctions can have on a portfolio’s risk/return profile. From the weighting methodology employed by the underlying index to the choice between large caps and small caps for international equity exposure, many details that are often the subject of little consideration can play a big role in determining how an ETF portfolio performs. Below, we highlight five more easy-to-overlook nuances of ETF investing that are often felt in the bottom line [for more ETF insights, sign up for our free ETF newsletter]: 1. Futures-Based vs. Physically-Backed The introduction of commodity ETFs in recent years serves as an example of the impressive innovation that has become common in the ETF industry. Previously, exposure to natural resource prices was hard to come by for many investors. But the proliferation of exchange-traded commodity products has [...]

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Gold ETF Investing: Closer Look At All The Options

Michael Johnston — Mon, 18 Oct 2010 11:00:51 +0000

One of the major stories of the past few months has been the impressive rally in gold prices, which have repeatedly touched new record highs in recent sessions. Fueled by concerns about the impact of further quantitative easing and weakness in the U.S. dollar, gold has climbed steadily higher even as equity markets have showed somewhat surprising strength. The stellar performance of the yellow metal, along with a slew of options for establishing both direct and indirect exposure, has sent interest in precious metals to new highs as well. In recent years, options for achieving exposure to gold have expanded considerably, thanks in large part to the introduction of various exchange-traded funds. Funds offering exposure to gold prices through equities of companies engaged in the extraction of the metal have seen huge cash inflows, highlighting the ongoing evolution of the ETF industry. But the original means of accessing gold–through an [...]

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Gold ETFs: Boom Or Bust?

Jared Cummans — Fri, 15 Oct 2010 14:34:40 +0000

With the end of 2010 rapidly approaching, much of the uncertainty that investors had expected to lift this year remains firmly in place. Equity markets have staged an impressive rally in recent months, but significant hurdles remain in the form of persistently-high unemployment, regulatory uncertainty, and fiscal instability throughout much of the developed world [see Seven ETFs Peter Schiff Might Not Hate]. Likewise, bonds have endured an eventful 2010 but face an uncertain future. Despite predictions of a dismal year for fixed income, many bonds–particularly longer-dated securities–have surged this year. Yet to many, fixed income is a ticking time bomb; the next rate hike may still be some ways off, but with key benchmark rates at record lows there is nowhere to go but up. Moreover, concerns over the prospect of inflation have been revived in recent weeks, dealing another strike against bonds. Fed meetings seem likely to drive this [...]

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“Optimum Yield” ETFs: A Contango-Free Alternative?

Michael Johnston — Tue, 11 May 2010 08:00:54 +0000

The rise of the ETF industry has changed the way many approach investing. The rock-bottom expense ratios charged by many ETFs have sparked a closer look at the merits of active management and a more critical look at the fees charged by traditional actively-managed mutual funds (see The True Cost Of Active Management). The ability to trade intraday has lured active traders away from individual stocks and into broad-based ETFs and more targeted sector funds. And the new-found accessibility of commodities through exchange-traded products has altered the asset allocation process and presented new options for non-correlated assets. While many of the ETFs available in the U.S. have seen increased interest in recent years, the growth of commodity products has been particularly impressive. In 2009, commodity ETFs took in cash inflows of more than $30 billion. But there have been some growing pains along the way. Because the value-to-weight ratios and [...]

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GLD vs. DGL: Two Gold ETF Options

Michael Johnston — Mon, 26 Apr 2010 14:00:58 +0000

When peeling back the layers of the ETF industry, one quickly realizes that certain corners of the market have expanded more quickly than others over the last several years. While many of the largest ETFs by total assets track equity indexes, those that have driven growth in both the number of products and total assets in recent years have focused on benchmarks linked to other asset classes, such as commodities. The commodity ETF boom is relatively easy to explain. Prior to the rise of the ETF industry, many investors were limited in their ability to gain exposure to prices of natural resources. With a handful of diversified commodity and resource-specific funds now available, any investor with an online brokerage account can make a play on everything from agriculture to sugar. One of the most popular commodities accessed through ETFs has been gold, a safe haven investment that many U.S. and [...]

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How Contango Impacts ETFs

Michael Johnston — Tue, 12 Jan 2010 09:45:00 +0000

After a chaotic 2008, most financial markets regained some degree of normalcy in 2009, as unprecedented volatilities subsided and a gradual calming of anxieties led to the return of rational trading. But for exchange-traded commodity products 2009 was a rather tumultuous period, as expectations for increasingly stringent regulations swirled and correlations began to break down. The ETF industry has grown by leaps and bounds in recent years, but the learning curve is still a steep one, and investors are continuing to educate themselves on the nuances of some of the more complex funds. One of the fastest growing areas of the industry has also been home to some of the biggest misconceptions: commodity ETPs have taken in billions of dollars, but have confused investors who failed to fully understand the investment objectives of these funds. One of the biggest misconceptions has related to the performance and strategy of exchange-traded commodities. [...]

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Palladium, Platinum ETFs Near Launch

Michael Johnston — Tue, 05 Jan 2010 14:23:51 +0000

ETF Securities (ETFS) indicated in a filing with the SEC last week that financial firm Susquehanna Capital Group has bought 100,000 shares of its proposed first-ever platinum ETF, with delivery expected by the end of this week. Susquehanna has also purchased 100,000 shares of a physically-backed palladium ETF proposed by ETFS. According to an October SEC filing, ETFS planned to register about 12.9 million shares of its palladium fund with a maximum offering price per share of $19.40. Susquehanna will also serve as the lead market maker for the new products, which came a step closer to becoming reality on December 22 when the SEC approved a rule change to list and trade shares of the trusts proposed by the London-based ETF issuer. Although there are multiple exchange-traded products linked to platinum available to U.S. investors, the proposed ETFS fund would be the first to be backed by physical deposits [...]

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ETF Database » DGL

VelocityShares Debuts Leveraged Precious Metals ETNs

Related Posts:

Among Gold ETFs, Bigger Isn’t Always Better

Related Posts:

Commodity ETFs: It Takes Two To Contango

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For ETF Investors, The Details Matter (Part II)

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Gold ETF Investing: Closer Look At All The Options

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Gold ETFs: Boom Or Bust?

Related Posts:

“Optimum Yield” ETFs: A Contango-Free Alternative?

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GLD vs. DGL: Two Gold ETF Options

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How Contango Impacts ETFs

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Palladium, Platinum ETFs Near Launch

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