ETF Database » GLL

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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Gold ETNs Provide Case Study In Monthly Leverage

Michael Johnston — Tue, 30 Aug 2011 13:45:19 +0000

After months of steady appreciation, gold has been on a bit of a wild ride over the last week or so. The precious metal has climbed to new heights repeatedly in 2011, thriving off of rising anxiety surrounding global equity markets, flights to safety after unprecedented downgrades, and even some weakness in the U.S. dollar. But last week gold encountered a rather rough patch that lent some credence to the notion that prices have inflated to bubble levels over the last few months. Investors fled gold ETFs in droves, taking profits generated during the run-up and jumping back into risky assets that have been battered by the wave of general risk aversion. Last week’s dip in gold prices also highlighted some of the nuances in the various exchange-traded products that offer leveraged exposure to precious metals. In particular, a pair of 2x leveraged ETNs linked to indexes comprised of gold [...]

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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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Investors Flock To Inverse Gold ETFs

Michael Johnston — Tue, 15 Feb 2011 15:00:20 +0000

Precious metals have been on a tear for much of the last year, no doubt delivering huge profits to some of the hedge fund managers who began stocking up on bullion in early 2010. Physically-backed gold and silver ETFs took in close to $10 billion in inflows last year, as investors embraced the exchange-traded structure as the most efficient way to establish exposure to an asset class that has safe haven appeal and can perform relatively well in inflationary environments as well. With uncertainty over the global economic outlook swirling and concerns about an uptick in inflation lingering, gold surged to new record highs in 2010 after adding about 25%. But the yellow metal was overshadowed by silver, which gained close to 90% on the year. Forget the tiger, 2010 was the year of the precious metal. But it seems that when the calendars changed, so too did the outlook [...]

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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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Gold ETFs: Where Do They Go From Here?

Eric Dutram — Tue, 03 Aug 2010 11:17:57 +0000

Despite global turmoil and continued concern over budget deficits in countries around the world, equity markets soared in July posting double digit gains on the back of solid earnings and easing fears over the situation in Europe. With equity markets jumping again to start August, gold has experienced a bit of a sell of as of late as traders have embraced risky stocks and even bonds due to near-term deflation fears. The yellow metal has seen its value fall from a record of $1,271/oz. down almost $100 an oz. before leveling off at its current level of $1,186. This rapid decline has left many traders wondering if we have seen the top in the gold market and that prices will tumble below the key $1,000 level or if this is only a breather on gold’s march upward to $1,500 an ounce and beyond. Where Does Gold Go From Here? It is hard to think of a time [...]

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The Definitive Guide To Inverse Gold ETF Investing

Michael Johnston — Tue, 15 Dec 2009 21:36:28 +0000

Gold is often referred to as a “safe haven” investment, reflecting its tendency to rise in times of economic uncertainty. While there is no shortage of “gold bugs” that buy and hold the metal for extended periods of time, there are countless investors who trade gold quite actively. Just as signs of weakness in the global equity markets or unexpected negative developments can send gold prices climbing, good news or bullish sentiment on Wall Street can send gold prices plummeting. Fortunately for investors, just as there are a number of ETFs offering the ability to establish a long position in gold, there are several funds that offer short exposure as well. Gold Price Drivers Valuing gold is a difficult task that is perhaps more art than science. Because gold is a commodity, it doesn’t make interest or dividend payments to investors, making any sort of cash flow analysis impractical. And [...]

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ETF Plays For $3,000 Gold

Michael Johnston — Thu, 17 Sep 2009 09:00:44 +0000

The Gold Rush of 2009 likely hasn’t come as a complete surprise to too many investors. After all, gold has been proven time and time again to be a “safe haven” investment that rises during uncertain economic times (such as the last two years), and questions about the dollar’s future as the world’s reserve currency (along with other factors placing downward pressure on the greenback) have led many to reconsider their strategic holdings. But the length and degree of the run-up in gold prices certainly caught a number of investors (myself included) off guard. Brett Arends poses a question I would have laughed at two years ago, but now take quite seriously: is it realistic to think gold could really go to $3,000? Some gold bugs think it’s a distinct possibility. Bud Conrad, the chief economist at Casey Research and a noted gold bug, estimates that gold prices could quadruple [...]

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ETF Database » GLL

VelocityShares Debuts Leveraged Precious Metals ETNs

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