From the category archives:

Volatility

As investors grow more familiar with the exchange-traded product structure, many have started to utilize these instruments for tactical exposure and not just as buy-and-hold building blocks in their portfolios. After equity markets logged a stellar performance in 2013, volatility has rightfully been a key concern for many investors looking to navigate this year’s ups and downs on Wall Street. Andy O’Rourke, Managing Director and Chief Marketing Officer at Direxion, recently took time to discuss some of the headwinds that could plague markets in 2014, in addition to explaining the differences between two seemingly identical low-volatility strategies.  [click to continue…]

{ Comments on this entry are closed }

Move Over VIX (VXX): A Better Way to Measure Volatility?

by on November 19, 2013 | Updated December 11, 2013

The  S&P 500 VIX Short-Term Futures ETN (VXX, B+) debuted in early 2009 and has been one of the most polarizing funds ever since. Tracking futures on the VIX, which is often dubbed “The Fear Index,” VXX has offered traders hefty volatility and the potential for significant gains (or losses). Trading an average of 13.2 million shares each day, VXX is one of the most traded ETFs in the world. Now, a firm called NationShares believes it has developed a better way for investors to track volatility, and the firm plans to release an ETF that looks to compete with VXX [for more ETF news and analysis subscribe to our free newsletter]. [click to continue…]

{ Comments on this entry are closed }

As correlations between international markets have steadily increased over the years, identifying non-correlated assets has become both increasingly important and difficult. In this environment, long/short investment strategies may be an intriguing opportunity, as they maintain the potential to generate positive returns even in the most challenging of economic climates. Investors who wish to access the long/short […]

{ Comments on this entry are closed }

During uncertain times, investors gravitate toward lower volatility equities and ETFs, as there is generally less risk attached to these products due to their more stable price action. But even during calm and high growth times, low volatility equities and ETFs have benefits. Growth within the ETF industry now provides investors with highly liquid vehicles […]

{ Comments on this entry are closed }

How To Hedge With ETFs

by on March 4, 2013 | Updated May 23, 2013

ETFs have rightfully earned the approval of countless buy-and-hold investors as these financial vehicles have proven to be cost-efficient portfolio building blocks. With over 1,400 exchange traded products (ETPs) on the market, it’s also no surprise that more tactical investors and savvy traders have also embraced these instruments for their ease-of-use, transparency and unparalleled liquidity. […]

{ Comments on this entry are closed }

How ETF Traders Can Use The VIX Index

by on February 14, 2013 | Updated December 8, 2014

Investors and traders alike have surely run across the Volatility Index, commonly referred to as the VIX, in headlines from time to time. Many are quick to overlook this valuable indicator since they may not understand how it works, or how to use it to help forecast stock prices. However, this so-called “fear index” offers […]

{ 0 comments }

While most enjoyed 2012′s rather impressive track record, other not-so-lucky investors fell pray to those corners of the market most affected by the global economic slowdown. Some of the worst performers were the usual subjects, namely volatile commodities and alternative energy equities, but others might have been somewhat surprising. From the frustrating natural gas market […]

{ Comments on this entry are closed }

Emerging markets offer the potential for stellar returns during times of prosperity, however, they can also fall victim to rampant profit-taking when global markets encounter turbulence; at the first sign of economic uncertainty, emerging markets are usually among the first to sell off as investors scale back on risk exposure. Luckily, the expansion of the […]

{ Comments on this entry are closed }

Most VIX-focused exchange-traded products have tumbled over the course of the last several months, as surprisingly strong equity markets have led to a consistently depressed VIX. The relatively low levels of volatility, coupled with persistent and steep contango in futures markets, have pushed down most of the products in the Volatility ETFdb Category sharply on […]

{ Comments on this entry are closed }

Under the umbrella of exchange-traded products, ETNs have attracted far less interest than their ETF cousins and now represent only a small portion of total ETP assets. Exchange-traded notes are debt instruments linked to the performance of an index, and as a result there won’t be any tracking error with these products. Although these investment vehicles […]

{ 0 comments }

The first half of 2012 is now in the books, dropping the curtain on a back-and-forth six months for many investors. Though the sentiment recently has been generally negative, the first half will close with positive year-to-date returns for many broad-based equity and bond ETFs–the result of a furious rally during the first two months […]

{ Comments on this entry are closed }

When it comes to investing, the focus is always on one simple and logical goal: maximize returns, whether in the short term or over the long haul. But as many can attest to, investing can sometimes be a crapshoot. Nearly every imaginable event or influence can send shock waves into the market, instantly producing a […]

{ Comments on this entry are closed }