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It’s no secret that exchange traded products have had a major impact on the investing world, as the low-cost, transparent vehicles have been enjoying strong growth for more than two decades. While it is fair to say that the ETF industry as a whole has changed the investing world, there are also specific products that have changed the investing world forever. Below, we outline five ETFs that forever changed Wall Street upon their debut [for free ETF news and analysis subscribe to our ETF Daily Roundup]. [click to continue…]

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Exchange-traded funds have found their way into countless portfolios, as investors of all types have embraced their cost-efficient, diversified exposure to virtually every corner of the global markets. Given their liquidity and access, active traders have increasingly expanded their playbook to include ETFs, accounting for a greater share of trades. Leveraged ETFs have become especially popular within these groups, but can be dangerous for the inexperienced [see 10 Questions About ETFs You've Been Too Afraid To Ask]. [click to continue…]

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Leveraged ETFs have become very popular among active traders looking to increase their exposure to a given index without buying on margin. While the SEC has warned of their risk on multiple occasions, many traders continue to utilize these ETFs without taking into account all of the associated risks. For example, the daily compounding they […]

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12 Cheap ETFs Every Trader Must Know

by on March 20, 2013 | Updated December 8, 2014

The popularity of ETFs–for their transparency, diversity across asset classes and low fees–have created a lot of competition between ETF providers to attract volume. One way ETFs attract volume is through a low expense ratio (ER). The ER is the fee charged to manage your funds on a yearly basis, expressed as a percentage. While […]

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Reviewing Three Different Types Of Leveraged ETFs

by on December 13, 2010 | Updated December 11, 2012

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 […]

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The SEC’s recent decision to take a closer look at the use of swaps and other derivatives by exchange-traded products and mutual funds has once again thrown leveraged ETFs under the microscope, as regulators begin examining the tools and strategies employed by these products to accomplish their objectives. During the study, approval of any ETFs […]

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UNG’s Wild Year

by on December 28, 2009 | Updated June 24, 2010

The United States Natural Gas Fund (UNG) has found itself at the top of a number of lists this year. The natural gas fund has been one of the most popular exchange-traded products, with cash inflows to date in 2009 of $5.4 billion, more then four times the assets UNG maintained only a year ago. […]

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Over the last year, leveraged ETFs have been the subject of intense scrutiny from a number of parties, including regulatory agencies, state governments, broker-dealers, individual investors, and even class action lawyers. While several aspects of leveraged ETFs have been thoroughly analyzed and debated, perhaps no issue has drawn more attention than the effects of compounding […]

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In a step apparently intended to calm some of the fury surrounding the sale and use of leveraged ETFs, the Financial Industry Regulatory Authority (FINRA) announced Tuesday that it will raise margin requirements for leveraged ETFs beginning December 1. Regulatory Notice 09-53 states that “in view of the increased volatility of leveraged ETFs compared to […]

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The old saying “any publicity is good publicity” certainly seems to ring true in the ETF industry. Over the last several months, leveraged ETFs have been the subject of intense scrutiny, first from individual investors and analysts, and more recently from regulatory agencies such as FINRA. Despite allegations that these funds are dishonest products that […]

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How To Fix the Leveraged ETF Mess

by on June 26, 2009 | Updated August 12, 2009

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 […]

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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 […]

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