Search results “Double leveraged inverse etfs”
The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4
Leveraged ETFs - Opportunities, Risks and Dangers. http://www.financial-spread-betting.com/Exchange-traded-funds.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! How risky are leveraged exchange traded funds? These instruments are only for day trading or holding positions for a few days at most. When buying into a leveraged ETF not only are there trading costs but in some cases you also have the interest expense of the debt used to achieve the actual leverage. But why are leveraged ETFs dangerous? The issue with leveraged ETFS is that you can end up losing all your money while waiting for the ETF to move in your direction. Let's suppose that over 50 trading days, half of those days the index you're tracking moves up by 5%, and half of those days it moves down by 5%. If you are investing in a normal unleveraged exchange traded fund, at the end of that time you will still have 93.9% of your capital. As such, you can absord that and wait till it reverses. But if you're in a 3x leveraged ETF, on down days your ETF will go down by 15%. On positive days it will go up by 15%. One up-down cycle and you end up with 2.25% less of your capital. (1.15*0.85=0.9775.). Two up-down cycles, and you have lost 4.45%. After the 50 days period only 56.6% of your capital remains. Can you really recover? That's the big issue - if an index doesn't go anywhere and is range-bound, the leveraged ETF will end up underwater. And of course if the index moves in the opposite direction to your 'bet', you could end up getting wiped out rapidly. As such you only win if a move up happens swiftly... So, that's the big problem: if an index treads water, the leveraged version will lose money. And of course, if the index goes down substantially, as it could in a bear market, you could get quickly wiped out. Basically, you only win if a move up happens quickly, which I assure you is not always the case. So is a 3x ETF a bad investment? If you get the direction right, it’s a good investment. Due to the derivatives used in the composition of the ETF, they tend to under perform their leverage number. IOW, a 3x ETF might return 2.25 or 2.5 or 2,75 times the underlying index but that’s still significantly better than a 1x ETF. There’s also the issue of beta decay. In terms of achieving the leverage return, 2x and 3x leveraged ETFs are effective for short term trading. Just remember that leverage is a double (or triple edged) sword. If you can make 3X if right, you can lose 3X if wrong. In this series: ETFs, What is An Exchange Traded Fund? Part 1 🙌 https://www.youtube.com/watch?v=DUv4A-y52jw Main ETFs to Trade Part 2 👍👌 https://www.youtube.com/watch?v=4zecElizm4g What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍 https://www.youtube.com/watch?v=zfPDpq4BaUs The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4 https://www.youtube.com/watch?v=M7dNVJeQ9cE
Views: 8936 UKspreadbetting
Understanding Inverse ETFs
http://optionalpha.com - A simple explanation to understanding Inverse ETFs. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 27558 Option Alpha
What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍
Inverse and Leverage ETFs. Let's talk about leveraged exchange traded funds. http://www.financial-spread-betting.com/Exchange-traded-funds.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! An inverse ETF basically inverses the performance so if you've got an inverse of the S&P500, if the S&P500 goes up then the S&P500 goes down. A leveraged ETF magnifies the gain - it aims to make 2 or 3 times the movement of the underlying asset it is tracking. You can also have an inverse leveraged ETF... TBT - aims to do twice the inverse of the 20+ Year Treasury Bond SDS - aims to do twice the inverse of the S&P 500 i.e. UltraShort S&P500 ETF TZA - aims to do triple the inverse of the Small Cap i.e. Direxion's Daily Small Cap Bear 3X Shares FAZ - aims to do triple the inverse of the Financials i.e. Direxion Financial Bear 3X (FAZ) ETF UVXY - VIX ETF but double. WARNING 2x & 3x ETFs, especially inverses, do not always follow what it says on the tin. Be Wary. In this series: ETFs, What is An Exchange Traded Fund? Part 1 🙌 https://www.youtube.com/watch?v=DUv4A-y52jw Main ETFs to Trade Part 2 👍👌 https://www.youtube.com/watch?v=4zecElizm4g What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍 https://www.youtube.com/watch?v=zfPDpq4BaUs The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4 https://www.youtube.com/watch?v=M7dNVJeQ9cE
Views: 1998 UKspreadbetting
Death by Leveraged ETFs - Warning About Exchange Traded Funds!
Exchange traded funds (ETFs) are just like stocks, but there is a major problem with them. Subscribe: https://www.youtube.com/user/PeterLeedsPennyStock Do not buy or sell any ETF until you watch this warning. Subscribe to our channel, to learn more about investing, penny stocks, and profits from high-quality, low-priced shares: https://www.youtube.com/user/PeterLeedsPennyStock ETFs are a lot like a mutual fund, in that they hold a group of investments (stocks + bonds). The beauty is that they trade just like stocks, and have lower commissions, and you can trade any time. Each ETF is designed to mimic a specific investment or group of investments. So, for example, GLD attempts to copy the movements of gold prices. If you think gold will go higher, you can buy GLD. If you believe the economy of Africa will grow, you could buy AFK, if you want more exposure to Germany, you could purchase EWG, and so on. Warning number 1, and this isn't what I need to tell you about in this video, sometimes trading can be thin, so use limit orders rather than market orders if you are going to trade them, especially true in the very early or very last trading minutes each day. Anyway, here is the problem with ETFs which can cost you a huge amount of money. ETFs are actively managed, being continually rebalanced so that their holdings reflect the intention of the ETF. For example, INDA is meant to mirror the action of a wide range of companies in India. It involves 85% of the Indian stock market, and needs to be adjusted on a daily basis to make sure it is staying true to its purpose. With these adjustments comes a small management fee. Typically this expense will be very small, usually a fraction of a percent, and is typically less than a common mutual fund. - straight-up ETFs are pretty good, but leveraged ETFs will destroy your investment. - if tracking oil prices, USO will move very similarly to oil. If oil goes up 10%, the ETF may only rise 9.8%. This slight loss is barely noticeable, and it is called slippage. Not a huge deal, but this happens every day. When you get into leveraged ETFs, this becomes a major problem. For example, UWTI is designed to provide 3 times the return of WTI oil. If WTI goes up 1%, UWTI tries to rise 3%. Likewise, if WTI falls 1%, UWTI would fall about 3 times that much. The problem is slippage. In reality if WTI rises 2%, UWTI is designed to climb three times that much, so 6%. However, in reality it may only gain 5.95%, for example. Then, if WTI falls 2%, it is back to where it originally started, but UWTI is designed to fall 3 times that amount, or 6%. In reality, it will likely fall a tiny bit more than 6. These slight shortfalls get applied every day, so if you lose a fraction of your investment, again and again and again, you are suffering a slow bleed. You probably wouldn't even notice it on any single day, but that is why the long term charts of any leverage ETF are always in a slow, steady downtrend. ETFs, especially the leveraged ones, are great for making a very short term call, but should never be used for long term investing. For example, if you expect oil prices to spike, you could play it by buying UWTI, but do it only as a short term trade. If you hold for weeks or months, you will almost certainly lose . Protect yourself when trading ETFs. Consider avoiding buying or selling in the first few or final few minutes. And do not hold ETFs for extended lengths of time, especially the leveraged ones. . Get More From Peter Leeds: YouTube: https://www.youtube.com/user/PeterLeedsPennyStock HOME = https://www.peterleeds.com/ .... Facebook = http://bit.ly/1t4Tifo Twitter = https://twitter.com/peter_leeds Penny Stocks for Dummies = http://amzn.to/1WyGaLo ... E-Mail: [email protected] Phone: 1.866.695.3337 .
Views: 35529 Peter Leeds
How To Trade Inverse ETFs | Swing Trading For Beginners
📸 FOLLOW ME ON INSTAGRAM (@StasSerfes) 📸 https://www.instagram.com/stasserfes/?hl=en 🔴 My Equipment & Favorite Books 🔴 https://www.amazon.com/shop/stasserfes 🤑 Sign Up to ROBINHOOD & Get a FREE STOCK 🤑 https://share.robinhood.com/anastas82 🔵 Strive Smart Discord Chat 🔵 https://discord.gg/aavHHGT 📘 Strive Smart Facebook Group 📘 https://www.facebook.com/groups/261011534628242/ 📸 Strive Smart Instagram (@StriveSmart) 📸 https://www.instagram.com/strivesmart/?hl=en 🐥 Twitter (@StasSerfes) 🐥 https://twitter.com/StasSerfes Business Inquiries: [email protected] Disclaimer: These videos that I create on YouTube shouldn’t be taken as financial advice. I am not a licensed financial professional. Nothing I mention in these videos is meant to be a recommendation to buy or sell any stock, etf, index, or future. Please consult with your financial professional for your financial advice. I am not liable for any loss that you may experience from watching these videos. Do your own research when it comes to investing and trading to take 100% responsibility for your financial decisions and future.
Views: 6407 Stas Serfes
Trading Leveraged ETFs For Max Profits
Trading Leveraged ETFs For Max Profits walks through the risks and benefits of trading these highly speculative 2x and 3x leveraged bull and bear ETFs. ► Subscribe to our YouTube channel: http://bit.ly/2kLE2Pz ORIGINAL ARTICLE LINK which has been updated with new examples, a section on volatility decay, contango impact, and more: http://www.thetraderisk.com/trading-leveraged-etfs-for-max-profits SKIP AHEAD: What are leveraged ETFs? 1:44 How are leveraged ETFs constructed? 3:24 What are the risks of trading leveraged ETFs? 5:09 What are the benefits of trading leveraged ETFs? 13:36 My strategy for trading leveraged ETFs 17:55 Universe of leveraged ETFs 26:00 At The Trade Risk, we help traders make money in the stock market. Learn More: https://www.theTradeRisk.com Newsletter: https://www.theTradeRisk.com/newsletter Trade Alerts: https://www.theTradeRisk.com/swing-trade-alerts Market Dashboard: https://www.theTradeRisk.com/market-health-dashboard Breadth Cycles: https://www.theTradeRisk.com/stock-market-breadth-cycles Follow Us: https://www.twitter.com/evanmedeiros Thank you for watching! #TheTradeRisk #ETFs #LevergedETFs
Views: 24028 The Trade Risk
Inverse ETFs: Making Money When Markets Crash!
An Inverse ETF can be a wonderful vehicle to make money in a bearish (down) market. It is is a type of exchange traded fund constructed using various derivatives allowing investors to profit from the decline of the underlying benchmark or security. The greatest advantage offered by an Inverse ETF is that the investor is not required to hold a margin account and the consequent unlimited risk of short selling. Inverse ETFs seek to perform opposite their benchmark ETF. They are particularly popular instruments in a bearish market, but a few potential downsides exist. Study our training for an in-depth look into Inverse ETFs, their benefits and the precautions you should take when using them to make money in a bearish market. Do you have the link to our stock chart layout? If not, FIRST go to FreeStockCharts.com. REGISTER and set up a FREE account. Next, OPEN up the charts and CLICK this link to our most up-to-date layout: bit.ly/CWLayout. Last, SAVE the layout under File, Save As. Now you have it! Have you watched our 15 minute “How to Read a Stock Chart” video? If you are serious about investing in stocks, this is a "must watch” training. Here’s the link to the FREE, exclusive video: bit.ly/ReadChart.
Views: 17388 Charting Wealth
3 Rules for Investing in Leveraged ETFs
Looking to buy ETFs that offer magnified exposure to stocks, bonds, or gold? Before diving in head-first, Ron DeLegge, Chief Portfolio Strategist @ ETFguide explains how leveraged ETFs work. Ron also gives you three important rules for using these high octane funds. Take Ron’s Portfolio Report Card challenge and if you score an “A” you win $100! Go to http://www.etfguide.com/portfolio-report-card
Views: 11541 ETFguide
How to Use Leveraged ETFs
A set of defined reactions is the best way to use the high volatility of leveraged ETFs for greater profit. Contrary to media warnings, leveraged ETFs beat the market over many time periods even with a simple buy-and-hold approach. A look at my performance tables proves it. We can improve upon their performance by running 2x and 3x leveraged ETFs through defined reactions that extract profit from their higher highs and add capital to their lower lows. ___________________________ Want more information like this? Please subscribe to this channel! To review the long-term performance of buying and holding leveraged funds, please visit my Strategies page: http://jasonkelly.com/resources/strategies/ Thank you for watching!
Views: 13891 The Kelly Letter
Best ETFs Review 2019: How to Triple Your Returns
Use the best Leveraged ETFs to double or triple your returns! Practice trading today! Read more about Leveraged ETFs here: http://blog.wallstreetsurvivor.com/2018/09/16/leveraged-etfs/
Dangers Associated With Inverse and Leveraged ETF Trading - Attorney Denver Seattle
ETFs (or Exchange Traded Funds) have become increasingly popular over the last 15 years. ETFs are typically used to track and replicate the performance of an index, such as the S&P 500, the Russell 2000, or the Dow Jones. ETFs are popular, because investors can invest in a basket of securities that provides diversification but with the simplicity of being a single stock. In recent years, many companies have also created leveraged or inverse ETFs. Leveraged ETFs try to replicate the performance of a particular index, but attempt to replicate the performance by doubling or even tripling the index. As an example, the Proshares Ultra Russell 2000 ETF seeks to double the performance of the Russell 2000 Index. Inverse ETFs also try to replicate the opposite (or even multiple opposites) of a particular index. For example, Ultrashort QQQ Shares seeks a return of two times the inverse (-2x) of the daily performance of the NASDAQ-100 Index. Leveraged and inverse ETFs can be useful investment tools for investors seeking intra-day trading. However, inverse and leveraged ETFs are often misused, by retail investors and even financial advisors. The regulators and others have long-warned the securities industry about the dangers of inverse and leveraged ETFs. These are designed to be day-trading vehicles, but often financial advisors recommend holding these ETFs in an investor’s accounts for weeks or even months. Israels & Neuman PLC is a securities law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states. Our attorneys have represented over one thousand investors against many brokerage firms in the past. www.wesuewallstreet.com
How does a levered ETF work?
Shows how a levered ETF delivers on its promise to provide a multiple of the daily returns of an underlying index
Views: 19872 Symmetricinfo
How To Trade Trend Reversals | With Inverse ETF's
In this trading lesson video, we will be going over how to trade trend reversals in the market, and how you can long inverse ETF's during these volatile moments to really build your bank roll. With the market going on its uptrend the past few weeks, we saw that this week there was a sign for a pullback to come in the market. When this happens, and you see volatility coming in, switching over to inverse ETF's can be a sure way to minimize your risk, with a much larger reward that most setups. This trade review we go over the TVIX, and its inverse pattern with the SPY and stock market. These kinds of trades happen in other tickers like UVXY, another powerful etf we use during these market pullbacks. The idea is staying ontop of the trend. Failing to do so will have you longing stocks during pullbacks, and shorting stocks during pops. You have to be dynamic and manipulate your trading strategy around the sentiment of the market. As we always say, the path of least resistance is the trend. You don't want to fight it, you want to ride the wave with it. Use this inverse trading pattern next time you see oversold market indicators and watch what happens when the market pulls back and these inverse tickers take off. Trade smart, trade fast, and trade profitably! Cheers everyone! If you want to join our next 60-day bootcamp, you can get all the course details here: https://bullsonwallstreet.com/trading-courses/ Check out our FREE trading education library: http://bullsonwallstreet.com/blogs/education/ Subscribe to our channel and get access to the newest trading videos every week. ## About Bulls on Wall Street We teach day trading strategies and swing trading strategies to both new and experienced traders. Our stock trading courses are an essential how-to trading guide for anyone who wants to become a winning day trader or swing trader. Twitter: @Kunal00, @bullsonwallst Bootcamp Stock Trading Course: http://bullsonwallstreet.com/trading-courses/ Day Trading Chat Room: http://bullsonwallstreet.com/bulls-vision/ Swing Trading Service: http://bullsonwallstreet.com/swing-trade-alerts/ ## Stock Trading Courses The Bulls on Wall Street trading courses teach the day trading strategies and swing trading strategies we use every day. Our courses will show you how to use technical analysis and chart patterns to find low risk, high reward stock trading opportunities. The Bulls Bootcamp stock trading course also includes a stock trading simulator, so you can practice what you've learned by paper trading, before trading live. Acquiring a high quality stock trading education is a must for anyone who aspires to day or swing trade stocks profitably. ## Day Trading Stocks A day trader is someone who buys and sells one or more stocks within the market hours of a single day. As day traders, we use stock scanning software to find new intraday stock trading opportunities every day. This allows us to trade the most active momentum stocks, taking advantage of low risk, high reward opportunities and then moving on. Our day trading service will not only alert you when we make trades, but also teach you the trading strategies we used to find and execute those trades. ## Swing Trading Stocks A swing trader buys a stock with a plan to hold it for several days or weeks. Our swing trading service teaches you the swing trading strategies we use to find and trade stocks. As a swing trading service subscriber, you will also receive trade alerts, market analysis, and swing trading how to videos. Swing trading is a great choice for anyone with a full time job, as it doesn't require you to sit at your computer during market hours.
Views: 4775 Bulls on Wall Street
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Views: 1599 Matt Giannino
Inverse ETFs : Profit from Stock Market Crash? Ep#023
Inverse ETF trading video shows you trading tips for active traders. Forward this video to a friend! for more, visit http://www.TradeMastery.com learn how once you join me as a member at: http://SwingScans.com (swing traders) and/or http://TradingTheOpen.com (day traders) Day trading & swing trading. See industry leader Ken Calhoun, President of http://www.TradeMastery.com in this powerful new video. Learn day trading and how a real daytrader looks for entries and exits in each morning's markets. No actual trades are taken, all information for training/education. Day traders have trusted us since 1999. All information for educational/information use only, no recommendations nor offers to buy/sell nor trade any instrument are being made. Full disclaimer at www.daytradinguniversity.com/disclaim.ht­­­­­­­­­­­­­­­­­­­­­­­­m (c) 2016 All Rights Reserved Worldwide. Learn more at www.TradingTheOpen.com , our live trading room for active traders. Ken has been featured in Moneyshow, Active Trader, Technical Analysis of Stocks & Commodities, and more. Commodity Futures Trading Commission (CFTC) Rule 4.41 HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS
Views: 8304 tradingtelevision
Why 3x ETFs May Be Too Dangerous for Portfolios
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Most traders want the fastest returns possible, which leads them to 3x leveraged ETFs—many leveraged ETFs, remember, aim to double or triple the daily return of an index. However, this investing strategy is a dangerous game that most retail investors won’t win due to a lack of money management expertise. 3x ETFs are especially risky because of the higher degree of leverage used. They are also subject to extreme effects of compounding and volatility; they also feature big expense ratios. If money management isn’t your forte, then you should strongly consider looking into 1x ETFs. Whether you want to go long or short the market, 1x ETFs present several advantages over 3x ETFs. First off, you don’t have to worry about decay like you do with 3x leveraged ETFs. Two, they offer bearish investors a way to short the market without having to short individual stocks. This is important because if you short an individual stock, you always have to worry about unexpected positive news—say, the company gets acquired or its stock gets upgraded. This can totally knock you out of the game. A third advantage to 1x ETFs is much lower volatility than 3x leveraged ETFs. The lower volatility will help prevent emotional decisions, which often end up being poor decisions. Essentially, if you’re a long-term investor who wants to go long or short without worrying about losing even if you should be winning, then you might want to look into 1x ETFs. A few examples are provided below. (For related reading, see: Why 3x ETFs Are Riskier Than You Think.) All numbers below as of Jan. 25, 2016. Long S&P 500 You will not find any ETF with more liquidity than SPDR S&P 500 ETF (SPY), which tracks the price and yield of the S&P 500 Index. SPY is not leveraged. Its average daily trading volume is 135 million. It also comes with a very low expense ratio of 0.09% and currently yields 2.06%. Since its inception in 1993, SPY has appreciation 327.13%. It has also appreciated 43.10% over the past five years. However, it has slipped 7.45% over the past year, which is likely due to a trend change caused by macroeconomic conditions and the fading impact of central bank stimulus. From a trading perspective, SPY has slid 9.35% over the past three months and 8.56% over the past month. Keep these numbers in mind when you look at the most liquid 3x leveraged ETF for the S&P 500. ProShares UltraPro S&P500 (UPRO) tracks 3x the performance of the S&P 500. Its average daily trading volume is 3.9 million. It comes with a 0.95% expense ratio, and it has appreciated 596.55% since its inception in 2009. It’s rare to see a 3x leveraged ETF deliver such an impressive performance over this period of time. This was primarily driven by the Federal Reserve stimulus, which allowed for lower interest rates that, in turn, led to excessive borrowing for growth and buybacks; this then led to inflated asset prices. This trend might be unwinding; all rallies should be met
Views: 42 ETFs
Inverse ETFs applicable to a stock market correction
We don't particularly like to short individual stocks. Instead, we gravitate to Inverse ETFs to take advantage of corrections in the market. We look at the QID (double inverse QQQ) and SDS (double inverse SSO)
Top 10 Most Traded Leveraged ETFs (UVXY, SDS)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Leveraged exchange-traded funds (ETFs) use the futures markets to magnify the returns of a specific index. There are leveraged ETFs that look to double or even triple the daily return of an index, and there are some that look to return the opposite of an index. The first ETF, the State Street SPDR Standard & Poor's 500 ETF, was launched in 1993. Since then, ETFs account for over $2 trillion in assets and have largely surpassed mutual funds in popularity. The first leveraged ETFs didn't appear until 2006. Acceptance of these products has taken a little longer, but they are now a part of many traders' investment strategies. Leveraged ETFs are generally used by traders who are looking to take short-term positions in indexes or commodities. Better suited to trading opportunities, leveraged ETFs usually don't make an appropriate longer-term investment due to the high cost structure that comes with the high level of trading needed to maintain the fund's positions. Some leveraged ETFs have expense ratios near 2%. Due to the leverage involved, these ETFs can be highly volatile, and the risk of principal loss with these funds is significant. Regardless, many of these leveraged ETFs still trade millions of shares daily. 1. ProShares Ultra VIX Short-Term Futures ETF The ProShares Ultra VIX Short-Term Futures ETF (NYSEARCA: UVXY) looks to double the daily performance of the S&P 500 VIX Short-Term Futures Index. ProShares is one of the market's leading providers of leveraged ETFs. The S&P 500 VIX Short-Term Futures Index spiked to near record levels in August, leading many traders to try to profit from the market's increased volatility. This ETF served its purpose during the month of August 2015, returning a total of 167%. Despite that, the fund is still down a total of almost 80% since Jan. 1, 2015. This ETF trades approximately 19 million shares daily. 2. ProShares UltraShort S&P500 ETF The ProShares UltraShort S&P500 ETF (NYSEARCA: SDS) seeks a daily return that corresponds to two times the inverse of the S&P 500. This is the first of several bear market ETFs on this list, indicating that traders are often more inclined to bet on a downward movement in the market than an upward one. This ETF trades approximately 15 million shares daily. 3. ProShares UltraPro Short QQQ ETF The ProShares UltraPro Short QQQ ETF (NYSEARCA: SQQQ) looks to return triple the inverse of the daily performance of the NASDAQ 100. This ETF uses a modified market index, looking to target the largest NASDAQ-traded securities, but it also excludes financial stocks. The NASDAQ has been on a relatively steady upward climb over the last five years; so, predictably, this ETF has gone almost straight down. Traders, however, still find it a useful trading vehicle. This ETF trades approximately 10 million shares daily. 4. Direxion Daily Gold Miners Bear 3x Shares ETF The Direxion Daily Gold Miners Bear 3x Shares ETF (NYSEARCA: DUST) seeks to return triple the in
Views: 123 ETFs
Leveraged ETF's - born losers, or just misunderstood? (Part 2 of 2)
Some of the leveraged funds pay dividends and have a substantial adjustment payout once each year. DXD (double inverse DOW) 'dividend' payouts for 2008... http://finance.yahoo.com/q/hp?s=DXD&a=06&b=13&c=2006&d=02&e=25&f=2009&g=v 23-Dec-08 $ 16.055 Dividend 24-Sep-08 $ 3.823 Dividend 24-Jun-08 $ 0.138 Dividend 25-Mar-08 $ 0.223 Dividend --------------------------------------------- Total divs = $20.24 Here's an actual example of buying the DXD inverse double etf, which covers the period around big dividend of $16.055....... 12/2008 Bought DXD @ 69.03 12/2008 dividend of $16.055 per share 02/2009 Sold DXD @ 74.7 All in all, it was a bonanza as I sold the stock at a profit and pocketed the big div too. By comparison, the DIA (etf tracking the DOW long) went from $89 on Dec 8th, down to $72 on Feb 24th. In conclusion.... DIA (DOW long etf) dropped 19% during the period. DXD (dbl shrt etf) gained only 5.67% but also paid out a div of 23% (based on the buy price paid) My own observations......... 1. It is true that pullbacks in the double inverse etfs lose more than they make in the previous gains...assuming that the DOW or whatever simply rose and then fell back to the same place. Short term trading is the only way to use the double etfs. 2. They are, however, extremely useful if you have any luck or talent with market timing. 3. The return is not double on a buy and hold, but most likely will become a disappointment as value erodes. Need to get some good entries and exits to avoid retracements which eat away at the returns. 4. This kind of problem is not unique to double etfs, USO (oil fund) for example has been a terrible way to pick a bottom in oil as contango (futures higher than spot) meant that USO made new lows even when the underlying oil price was well above its bottom. (My video on contango and USO) http://www.youtube.com/watch?v=QKsmaykLpvE
Views: 5959 flaskofcoffee
How to Profit from a Market Crash! 👊
How to Profit from a Market Crash! http://www.financial-spread-betting.com/strategies/volatility-trading.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE Market crashes or aggressive bear markets can present very lucrative trading opportunities for the short-term trader. How do we make money during those aggressive down moves? - Short Futures, CFDs or spreadbet, you could short the Dow or S&P500, Nasdaq, Dax or FTSE or you could pick the shares that are more vulnerable. - Buy inverse ETFs. An ETF will track the performance of an underlying. Inverse ETFs work the opposite way. We can also buy double or triple leverage ETFs which aim to replicate the underlying asset two or three times and inverse. - You can also use volatility products like VXX or VIX SDS x 2 this is S&P500 inverse ETF leveraged x 2 SPXU x 3 this is S&P500 inverse ETF leveraged x 3 SH x 1 - SH is S&P500 inverse ETF UK3S x 3 this is FTSE 100 inverse ETF leveraged x 3 SUK2 x 2 this is FTSE 100 inverse ETF leveraged x 2 XUKS x 1 just the inverse FTSE 100
Views: 3231 UKspreadbetting
The Death of XIV: A Warning To All ETF & ETN Traders
The story of The VelocityShares Daily Inverse VIX Short Term ETN otherwise known as US:XIV. This speculative inverse ETN (inverse volatility ETN) option was famous for its near miracle like performance in the years after 2008. Thousands of investors flocked to it claiming millions of dollars of profits. This all came to a sudden spectacular end following an explosion of the VIX. This is the story of XIV. Money Talks video link about the failure: https://www.youtube.com/watch?v=mJovHNjq9ok
Views: 369 MHFIN
What is an Exchange Traded Fund (ETF)? 👍
ETFs - Exchange Traded Funds - What are ETFs? http://www.financial-spread-betting.com/ PLEASE SUPPORT LUCY BY LIKING AND SHARING THIS VIDEO SO WE CAN DO MORE! ETFs - Exchange Traded Funds - What are ETFs? What is an ETF and how does it work? Our presenter, Lucy explains the workings of exchange traded funds. - Are ETFs a good investment? What are the pros and cons of exchange-traded funds? - What is the difference between mutual funds and ETFs? - What is the difference: Index Fund versus Exchange Traded Fund? - Are ETFs derivatives? How big is the ETF market? - Are ETFs trading better than stock trading? - What are some of the strategies to trade exchange-traded funds? ETFs also known as exchange traded funds are popular because of their low cost, tax efficiency, and simplicity. An ETF is basically a security tracking a commodity, index or basket of assets like individual stocks. ETFs or exchange traded funds are baskets of stocks or other securities. Some are index ETFs and mirror the S&P 500 or FTSE or some other international index. The basic idea of an ETF is to shelter you from individual stock gains/losses so as to average out a small gain that beats inflation. Types of ETFs There are various types of ETFs : a. Index ETFs - Index underlying b. Stock ETFs - Stock underlying c. Sector ETFs - Underlying as a sector index or sector stocks d. Commodity ETFs - underlying as commodity index or commodities f. Inverse ETFs - has an inverse relationship with underlying, for e.g S&P 500 inverse, would gain 1% if S&P 500 falls 1 %. g. Bond ETFs - underlying Bond index or portfolio of bonds h. Currency ETFs - with currency underlying) j. Leveraged ETFs - giving a leveraged return for e.g. on an index, a 2X ETF would give double return or loss. In this ETF series: Are ETFs Better Than Stocks? Stocks vs ETFs ☝ https://www.youtube.com/watch?v=GBa7oCyTeEo ETFs, What is An Exchange Traded Fund? Part 1 🙌 https://www.youtube.com/watch?v=DUv4A-y52jw Main ETFs to Trade Part 2 👍👌 https://www.youtube.com/watch?v=4zecElizm4g CHEAPEST ETFS TO TRADE / LOWEST EXPENSE RATIOS https://www.youtube.com/watch?v=JaDP_uUJbvA What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍 https://www.youtube.com/watch?v=zfPDpq4BaUs The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4 https://www.youtube.com/watch?v=M7dNVJeQ9cE
Views: 2902 UKspreadbetting
Using Index Short ETFs In Your Trading & Investing
The benefits of incorporating the use of inverse or "short" ETFs that track the major US stock indexes into your trading & investing. The pros & cons of using leveraged vs. non-leveraged ETFs are also covered along with the most liquid inverse ETFs commonly used as either a pure-play short on the stock market or as a hedge to an existing portfolio of long positions.
Leveraged ETFs: A Look At The Potential (And Peril) Of Shor
http://www.etfprofitreport.com Plain vanilla inverse ETFs are a safer alternative to their leveraged peers, but even with these products, a lengthy holding period may put investors at risk.
Views: 180 etfprofitreport
RECESSION COMING? How to Invest $100 In 2019! (for Beginners)
START INVESTING! 💰💸 - With Some FREE STUFF! ⭐ GET UP TO 2 FREE STOCKS from WEBULL: http://bit.ly/WEBULL-Free-Stock ✔️ ⭐ AND A FREE STOCK from Robinhood: http://bit.ly/Invest-Robinhood ✔️ ⭐ AND GET $5 FREE from Acorns: http://bit.ly/Acorns-5-FREE ✔️ ► WEBULL vs. ROBINHOOD Free Offers 🔥: 💸 WEBULL: Receive 1 FREE Stock Simply for Singing Up! (Valued Between $3-$300) AND 1 FREE Stock After Your First Deposit of $100 or More! (Valued Between $4-$1000) 💸 ROBINHOOD: Only Receive 1 FREE Stock for Singing Up (Valued Between $2.5-$200) ► DOWNLOAD MY GUIDE 🔥: How to Make Money During a Recession (36 Stocks/ETFs): https://gum.co/HqYvH It's been a rocky 2018 for the stock market, but get ready for something much, much worse. The stock market is long overdue for a significant pullback. Our current market is now the longest bull market in history and investors are (finally) running out of reasons to sustain this momentum. Now, I only say this because the average bull market lasts approximately 58 months according to investopedia.com. We’re more than double that number, this doesn’t mean the market’s going to crash tomorrow, but whatever goes up must come down eventually. In this video, I’m going to teach you how to invest your first $100 into the stock market in 2019 and how you can actually MAKE MONEY from a Market Crash. This video is geared to beginners, but don’t worry if you are more advanced this video has plenty of good information for you too! What People Typically Invest In During/leading up to Recessions: 1. Low Volatility/Dividend Stocks (SPDV) 2. Utilities, Transportation, and infrastructure 3. Consumer Staples (XLP) or Discount Retail (WMT) 4. Short the Market (SQQQ or TZA) 5. Invest in Volatility (TVIX) Three different ways I’d Invest $100 (least risky to most) 1. Invest In Discount Retail (Walmart) 2. Invest In Consumer Staples (XLP) and Short the Market (w/ SQQQ & TZA) 3. Invest in Volatility (TVIX) and Invest in a Dividend ETF (SPDV) ► Want More Suggestions? 🔥 (36 Stocks/ETFs): https://gum.co/HqYvH ______ 📕 Books for a Successful Life 📕 (Read/Listen to them, asap): 📌The 21 Irrefutable Laws of Leadership: http://bit.ly/21-Irrefutable-Laws ⭐The Intelligent Investor: http://bit.ly/Intelligent-Investor 📌Think and Grow Rich: http://bit.ly/-Think-Grow-Rich ⭐Awaken the Giant Within: http://bit.ly/Awaken-Giant-Within 📌The 4-Hour Workweek: http://bit.ly/Four-Hour-Workweek Not a Fan of Reading? Join Audible & Get Two Audio Books FREE! ❌📚 http://bit.ly/Two-Free “When you want to succeed as bad as you want to breathe, then you'll be successful.” ― Eric Thomas Have Questions or Want Advice? I'm Always Here: [email protected] ______ DISCLAIMER: I am not a financial adviser. All videos on this channel are for educational purposes only. Investing involves risk, though this risk can and should be minimized, your investments are solely your responsibility. It is critically important that you conduct your own research before investing. All views shared on this channel are merely my opinion with no guarantee of gains or losses on investments.
Views: 20495 Jonathan Clabo
The Painful Truth About Leveraged ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do With the current fragile market inspiring more and more investors to make directional bets on the performance of the market, a popular class of exchange traded funds has attracted attention. Unfortunately, the growing popularity of leveraged ETFs is coming at a painful price. IN PICTURES: 20 Tools For Building Up Your PortfolioA PrimerThe popularity of leveraged ETFs is easy to explain. They allow the small investor to make big directional bets on a market or industry without having to assume leverage. Investors can now make leveraged bets without having to open margin accounts. Unfortunately, many investors have been burned badly by investing in these instruments even after making the correct market call. Consider a very popular EFT, the UltraShort S&P 500 ProShares (NYSE:SDS), which is designed to deliver daily investment results which equal twice the inverse of the daily performance of the S&P 500. In other words, the SDS sounds a like a great way to hedge against a market sell-off. If the S&P declines 2% one day, the SDS will go up by 4%. (For more, see Inverse ETFs Can Lift A Falling Portfolio.) A Painful LessonA closer examination reveals this is not the case. In 2009, the S&P 500 began at 903 and today sits at about 880 or a decline of about 2%. One would think that the SDS should be up around 4%. Unfortunately, a chart reveals that the SDS is actually down 10% this year. Even the Ultra S&P 500 ProShares (NYSE:SSO) which is supposed to deliver twice the index result - and thus expected to be down 4% - is down 14% this year. (For more, see Five Ways To Find A Winning ETF.) Are these levered ETFs misleading investors? In actuality, the instruments are being completely candid with investors. The stated goal of the levered ETFs is to produce daily investment results based on the long or short strategy of the fund. Some basic math provides clarity. If the S&P 500 declines 15% one day, to get back to par will require a gain of approximately 18%. A 15% decline for the S&P will result in a 30% decline in the SSO ETF. A 30% decline requires a 43% return to get back to even. But since the SSO mimics the S&P 500, when the S&P gets back to even by going up 18%, the SSO has only appreciated by 36%, not the required 43%. Offer Good for a Limited TimeYou can see the trouble these ETFs can cause when they are misunderstood and used inappropriately. By definition, they are designed for short-term directional bets. From January until March when the market headed south fast, the SDS was up nearly 100%. Similarly, the UltraShort Financials ProShares (NYSE: SKF) and Ultra Financials ProShares (NYSE: UYG) have each staged triple-digit returns over short periods this year. But year to date, both are off over 40%. The Bottom LineUnfortunately for investors, the ETFs are doing exactly what they are supposed to be doing on a daily basis but as long-term leverage instruments they are deadly. Understand the basic simple
Views: 11 ETFs
Options Trading | Trading Leveraged Products
Tom Sosnoff and Tony Battista look at using leveraged products as underlyings when trading options. They discuss the basics of the differences between a leveraged product and an inverse product and how these can be used with your trading strategy. ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C Subscribe to our YouTube channel: http://goo.gl/Szl24S Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on LinkedIn: http://www.linkedin.com/company/tastytrade Follow tastytrade on Instagram: http://instagram.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/
Views: 1336 tastytrade
Matt Hougan: Why ETFs Will Outgrow Mutual Funds
Matt Hougan at MoneyShow Las Vegas: I see massive growth for the ETF industry in the next 5 years. ETFs are a perfect tool. Inside of 10 years, they'll be bigger than mutual funds. You'll see assets double and double again. And on leveraged and inverse ETF products: they are for compounding over short holding periods of time. In volatile markets, they tend to underperform. Conversely in trending markets, they tend to amplify your return. Be careful. He also shares ideas on ETFs that focus on lithium and rare earth metals.
Views: 44 MoneyShow
Ready-Fire-Aim technique: double inverse China ETF (FXP)
applying the RFA technique on an intraday trade in FXP, the double leveraged inverse china ETF
Views: 369 Ken Long
Rydex Inverse ETF
Created by Mortar. Mortar Advertising San Francisco is an integrated advertising agency with expertise in online and offline advertising, strategy, identity and positioning. Our services include print and broadcast advertising as well as interactive development and public relations.
Views: 397 MortarVideo
Leveraged ETFs
Find out what a leveraged ETF is and what makes them so risky.
Views: 27 Learnedly
5 Inverse Leveraged ETFs Soaring in September
Many products have generated double-digit returns since the start of September though these involve a great deal of risk when compared to traditional products.
Views: 15 Sweta Killa
ETFs  Losing At Leverage
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Exchange-traded funds are investments that trade like stocks, but instead of moving up and down with the value of a company, they track an index, or a group of securities such as a basket of commodities. If it is designed to track the largest 500 U.S. companies, then a 1% increase in the value of these companies should give a 1% increase in the ETF. Leveraged ETFs Leveraged ETFs are designed to follow daily changes in stock market indexes or other securities. A leveraged ETF with a 2:1 ratio uses financial derivatives and debt to match each dollar of investor capital with an additional dollar of invested debt. If one day the underlying index returns 1%, the fund will theoretically return 2%. While the upside potential is what most brokerage firms tout, the same theory applies for losses. Leveraged ETFs are under fire. Along with inverse ETFs, leveraged ETFs are the subject of a recent notice from the Financial Industry Regulatory Authority (FINRA) reminding brokers and registered investment advisers that these ETFs are unsuitable to be held by most investors for more than a single trading session due to their complex nature. Inverse ETFsInverse ETFs use derivatives to create a similar effect by betting against the direction of the financial markets. Known as short or bear ETFs, these products are designed to make money if markets decline. Marketed as a way to reduce your exposure to market risk or enhance portfolio performance, they can also have the exact opposite effect on performance if markets move against the bet. (To learn more about them, read Inverse ETFs Can Lift A Falling Portfolio.) In Defense and on the DefensiveProShares, a big player in this space, continues to defend the products, correctly pointing out that retail investors routinely purchase sophisticated investment products. That noted, ProShares UltraShort S&P500 (NYSE:SDS) is advertised as seeking daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the S&P500 Index. How has the fund done? Since its inception on November 7, 2006, it has not only failed to beat the benchmark, but from January 2, 2009, through July 31, 2009 - a period when the index was up by roughly 6% - the ProShares fund declined by approximately 30%. Investors who were lead to expect twice the inverse of daily index performance were not pleased with nearly quintuple that on the downside and have filed a lawsuit. The ProShares Ultra S&P 500 (NYSE:SSO) shares a similar fate. The fund is up just about double the index for 2009 through October at a net asset value of 31.27% versus 17.05% for the index. But over the three-year period, it lost triple what the index did coming in at -21.79% versus -7.02%. Unimpressed investors have also filed a lawsuit. Taking a look at Ultra Financials ProShares (NYSE:UYG), a clear pattern beings to emerge. Investors were told that ProShares Ultra Financials seeks daily in
Views: 6 ETFs
What is SVXY & How Does it Work? (Inverse Volatility ETF Tutorial)
SVXY is one of the most popular inverse volatility products available to S&P 500 volatility traders. Prior to the February 2018 market crash, XIV was the most actively-traded inverse VIX ETP. However, XIV was terminated after the February 2018 crash, and SVXY is now the leader in the inverse volatility space. In 2016, SVXY increased 80%. In 2017, SVXY increased 181%. Unfortunately, in 2018, SVXY is down about 90% year-to-date. How does this insanely lucrative, yet disastrously risky volatility product work? In this video, you'll learn the specific mechanics behind volatility products, specifically SVXY: - What do volatility products track? - What is the S&P 500 VIX Short-Term Futures Index? - When does SVXY perform the best, and when does it perform the worst? ====================================== Volatility Trader Course: https://www.projectoption.com/volatility-trading-mastery/ Get a FREE Options Trading Course: https://www.projectoption.com/free-options-trading-course/
Views: 1691 projectoption
ETF Bull Short ETF Bear Long Trade TQQQ SQQQ
http://www.stockmarketfunding.com ETF Bull Short ETF Bear Long Trade TQQQ SQQQ Bull ETF TQQQ vs Bear ETF SQQQ Trade Management Trader Training Stock Trading Strategies GOOG PCLN NFLX AMZN AAPL BIDU Equities are tanking Nasdaq 100 down 60 handles. S&P 500 Index finally got the hair cut it was looking for. Google.com traded down well off the highs hitting the $600 handle. We had "double bottom" price action and there was a nice long move off the short on the opening bell. We went long AMZN off the bottoms. Stock market upgrades and downgrades and stock commentary on GOOG PCLN NFLX AMZN AAPL Videos related to Keyword day trading, stock options, technical analysis, day trading strategy, day trading option, technical analysis of, day trading course, Day Trading System, day trading school, forecast day trading, technical analysis stock, technical analysis financial markets, technical analysis of markets, how stock options, stock market options packages, stock market options tips, technical analysis market, technical analysis software, trading stock options, free technical analysis, stocks on the options market, technical analysis of stock, technical analysis stock market, technical analysis stock trends, chart technical analysis, technical analysis for dummies, technical analysis fundamental, technical analysis pdf, technical analysis trading, market stock option, option stock market, options stock market, stock market options, stock option market, stock options basics, technical analysis commodities, technical analysis course, technical analysis of stock trends, technical analysis of the financial, technical analysis of the financial markets, technical analysis share, technical analysis stocks commodities, technical analysis using demand index
Shorting the S&P 500 UltraShort ProShares (SDS) Short ETF Trend Analysis
http://www.StockMarketFunding.com S&P500 UltraShort ProShares (SDS) Short ETF Trend Analysis Video Shorting S&P 500 Index Shares SDS How to profit from the decline in the stock market when the S&P 500 Stock Index declines through Bear ETF Short. ProShares ETFs: Short S&P500 -- Overview, Shorting The S&P 500 - Speculation on a Great Market Drop, Shorting the S&P 500: Comparison of Rydex & ProShares Inverse ETF, Summary for ProShares Short S&P500, Short S&P 500 ProShares Research, S&P 500 Double-Inverse ETFs, Triple-Inverse ETFs, SPXU Triple-Inverse ETFs, Follow us on Twitter: http://www.twitter.com/TradingSchool Free Trial Signup http://onlinetradinginvesting.eventbrite.com
Views: 2136 FreeOptionTrader.com
A ‘remarkable’ April for ETP flows
The exchange traded product (ETP) industry saw flows double in April month-on-month, with flows into fixed income hitting the highest level for ten months, according to BlackRock. Varia Pechurina, Investment Strategies for ETFs and Index Investments at BlackRock, spoke to IGTV’s Victoria Scholar about why she thought April was such a remarkable month. ► Subscribe: https://www.youtube.com/IGUnitedKingdom?sub_confirmation=1 ► Learn more about IG: https://www.ig.com?CHID=9&SM=YT Twitter: https://twitter.com/IGcom Facebook: https://www.facebook.com/IGcom LinkedIn: https://www.linkedin.com/company/igcom We provide fast and flexible access to over 10,000 financial markets – including indices, shares, forex, commodities – through our award-winning range of platforms and apps. Established in 1974 as the world’s first financial spread betting firm, we’re now the world’s No.1 provider of CFDs and spread betting* and a global leader in forex. We also offer an execution-only share dealing service in the UK, Ireland, Germany, Austria and the Netherlands. Through our low fees and smart price-sourcing technology, we help traders keep their costs down. All trading involves risk. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. The value of shares, ETFs and ETCs bought through a share dealing account can fall as well as rise. Please take care to manage your exposure. * For CFDs, based on revenue excluding FX, published financial statements, October 2016; number of active UK financial spread betting accounts (Investment Trends UK Leveraged Trading Report released June 2017); for forex based on number of primary relationships with FX traders (Investment Trends UK Leveraged Trading Report released June 2017)
Views: 174 IG UK
Ultra ETFs Are Not Your Father s ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Ultra ETFs can be an extremely valuable trading tool for a nimble investor, but a lot of risk is packaged with the returns. These ETFs can be very beneficial for investors who are short on capital, but they are also unpredictable due to the high amount of leverage and the way in which they can diverge from long-term expectations. (To learn more, see Leveraged ETFs: Are They Right For You?) TUTORIAL: Exchange-Traded Funds What Is an Ultra ETF? An ultra ETF, sometimes referred to as a leveraged ETF, is simply an exchange-traded fund (ETF) that uses leverage. These ETFs often utilize derivatives, options or futures to offer an investor an instrument that produces double, triple or another multiple of the returns of the underlying index or benchmark on a daily basis. (Learn more in Rebound Quickly With Leveraged ETFs.) ProShares offered one of the very first ultra ETFs in 2006, with the introduction of its Ultra ProShares. As an example, ProShares Ultra S&P 500 (ARCA:SSO) is an ETF that is designed to double the performance of the S&P 500 on a daily basis. So, if the S&P increases 1% on the day, SSO would typically be up around 2% on the day. (To learn more, see How is the value of the S&P 500 calculated?) When they were initially introduced, the basic index ETFs provided investors with instant diversification and an incredibly convenient tool to get immediate market exposure, without having to create a portfolio of individual stocks. Since their launch, their popularity has grown tremendously. ETFs are also extremely liquid trading instruments with expense ratios (annual operating expenses divided by average annual net assets) that are usually fairly low. Because of their success, many ultra ETFs were then launched to give investors and traders more tools and options to take advantage of market volatility. (Check out ETF Liquidity: Why It Matters for more info.) Advantages Leverage – Ultra ETFs allow an investor the potential to generate higher returns with the same amount of capital. This makes them an excellent tool, particularly for short-term traders. A trader with limited capital can now take a relatively small amount of capital and generate substantial percentage returns with an ultra ETF, especially in a volatile market environment, where 3 to 5% returns in a single day are commonplace. A 3% return in the market would equate to a 6% return for a holder of an ultra double ETF. IRA Benefits - Ultra ETFs are somewhat beneficial for IRA accounts, as they can duplicate the leverage of margin trading where trading in margin is typically banned. Although these ETFs can reproduce the margin effects, it is generally not advisable to use volatile leveraged ETFs designed for day trading inside your retirement account. (Learn about margin trading in our article, Margin Trading: What Is Buying On Margin?) Easy Short Exposure - The inverse are short ETFs, which allow an easy method to short the market without margin
Views: 4 ETFs
Mueller on Effects of Leveraged ETFs on REIT Shares
Glenn Mueller, professor with the University of Denver, joined REIT.com for a video interview at REITWorld 2013: NAREIT's Annual Convention for All Things REIT at the San Francisco Marriott Marquis. Mueller discussed his research on the effect of exchange-traded funds (ETFs) on the volatility of REIT share prices. "Exchange-traded funds are not really a unique vehicle anymore," he said. "They're really a mutual fund that trades during the day as opposed to at the end of the day." Mueller said the rise of leveraged ETFs has impacted REIT share prices significantly. "We found that as these things grew, and especially as the market got more volatile back in 2007 and 2008, if the market had moved during the day—let's say 2 percent—by the end of the day, it would be up 4 (percent)," he said. "Each of these ETFs is trying to keep the same portfolio mix as an index, and if a couple of stocks move and others don't, they have to rebalance every day at the end of the day. Their demand for either selling or buying stocks created a double volatility that shouldn't have been there. They're a derivative product, they're unregulated and they've caused havoc in smaller areas of the stock market where the market capitalization isn't as huge." Mueller also discussed the implications of his findings for REIT investors. "I've always said that in the short run, the stock market is emotional, and in the long run, it's logical," he said. "If you go back and look at the return on REITs since we started the REIT index back in 1972, the return has been very good if you bought it and put it away. In the long run, they're solid companies investing in real estate. It's the best way for individuals to invest in real estate and have good professional management of a big, diversified portfolio of properties. Hopefully, we can do something to regulate these leveraged ETFs to help reduce that volatility." Mueller is a member of the faculty at the Franklin L. Burns School of Real Estate and Construction Management and the real estate investment strategist at Dividend Capital Group. By Allen Kenney
Views: 198 Nareit1
VIX ETFs: Buyer Beware!
Understanding VIX contango and ETF leverage can save you a small fortune.
Views: 3770 ZacksInvestmentNews
Top 5 Inverse Oil ETFs to Short Oil in August 2017
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do We have selected five exchange-traded funds (ETFs) that concentrate on shorting oil stocks. The funds were selected based on assets under management (AUM) as of August 11, 2017. You would use these when you think the price of oil will drop. Note that none of the ETFs short actual oil stocks, but instead seek performance that is the inverse of an index. Some of these ETFs are leveraged, meaning they may use derivatives, futures contracts, and other advanced investment vehicles to achieve their goals. Whenever you see 2X, Ultra Short, 3X or Double in the fund’s name, it is a leveraged fund. Because these funds try to beat an index by two times or more, they can lose twice or three times the amount of money as well. (See also: New Leveraged Oil ETFs Coming Soon.) Oil prices are currently hovering at around $50 per barrel, due in large part to agreements spearheaded by OPEC to limit oil production that failed to raise the price of oil. No commodity price rises in a straight line. Investors who anticipate short-term drops in the price of oil can use inverse oil ETFs to take advantage of the drops. That makes these ETFs short-term plays in the current oil environment. (See also: The Risks of Investing in Inverse ETFs.) Some investors use inverse oil ETFs to cover losses they incur in their long oil positions during down trends. Others abandon long positions during down periods and short an oil index to increase profitability from oil investments. Here is how the top five inverse oil ETFs break down: 1. VelocityShares 3x Inverse Crude Oil ETN (DWTI) This ETF attempts to beat the S&P GSCI Crude Oil Index ER by 300% to the downside. Managers use futures contracts to pursue this strategy. Though the stated goal is to beat the index by 300%, investors should not expect to achieve this result for longer than one day. Avg. Volume: 3,568,012 Net Assets: $208.24 million YTD Return: -71.38% Expense Ratio (net): 0.00% 2. ProShares UltraShort Bloomberg Crude Oil (SCO) The Bloomberg WTI Crude Oil SubindexSM provides the benchmark for this ETF. SCO has a goal of achieving the inverse of the index by 200%. This indicates the fund is leveraged and carries more risk due to its aggressive methods. Note that the target index tracks oil futures prices. Avg. Volume: 1,445,131 Net Assets: $155.44 million YTD Return: 14.06% Expense Ratio (net): 1.03% 3. DB Crude Oil Double Short ETN (DTO) The focus of DTO is light sweet crude oil. The fund's money managers utilize the Deutsche Bank Liquid Commodity index - Optimum Yield Oil Excess Return. This is a short play for investors who want to anticipate crude oil prices as directly as possible. However, since the fund is leveraged, it may hold investments that are aggressive and carry higher risk. Avg. Volume: 6,649 Net Assets: $42.16 million YTD Return: 19.24% Expense Ratio (net): 0.75% 4. United States Short Oil Fund (DNO) DNO focuses on West Texas Intermedia
Views: 50 ETFs
Horizons ETFs Management (TSE:HMMJ) SVP on New 2x Daily Bull ETF (TSE:HMJU) & Inverse ETF (TSE:HMJI)
Horizons ETFs Management (TSE:HMMJ) (OTCMKTS:HMLSF) SVP Mark Noble explains the benefits of the financial services company’s two new cannabis ETFs. Horizons’ BetaPro Marijuana Companies 2x Daily Bull ETF (TSE:HMJU) is a leveraged fund offering investors 2 times the exposure to the daily performance of the North American MOC Marijuana Index. The second new offering is BetaPro Marijuana Companies Inverse ETF (TSE:HMJI) and is an inverse fund offering investors minus 1 times exposure of the daily performance of the North American MOC Marijuana Index. Noble explains that these new ETFs allow retail investors to capture short term moves in the cannabis space while providing greater liquidity and limiting risk. In particular, he emphasizes that the Inverse ETF (TSE:HMJI) offers retail investors a chance to take short positions, which can be harder to access for individual retail investors. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter
Views: 443 Midas Letter RAW
Exchange Traded Funds are essentially Index Funds that are listed and traded on exchanges like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur. They enable investors to gain broad exposure to entire stock markets in different Countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investing. ETF distributors only buy or sell ETFs directly from or to authorized participants, which are large broker-dealers with whom they have entered into agreements—and then, only in creation units, which are large blocks of tens of thousands of ETF shares, usually exchanged in-kind with baskets of the underlying securities. Authorized participants may wish to invest in the ETF shares for the long-term, but they usually act as market makers on the open market, using their ability to exchange creation units with their underlying securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates the net asset value of the underlying assets. Index ETFs Most ETFs are index funds that attempt to replicate the performance of a specific index. Indexes may be based on stocks, bonds, commodities, or currencies. An index fund seeks to track the performance of an index by holding in its portfolio either the contents of the index or a representative sample of the securities in the index. Some index ETFs, known as leveraged ETFs or inverse ETFs, use investments in derivatives to seek a return that corresponds to a multiple of, or the inverse (opposite) of, the daily performance of the index. Stock ETFs The first and most popular ETFs track stocks. Stock ETFs can have different styles, such as large-cap, small-cap, growth, value, et cetera. For example, the S&P 500 index is large- and mid-cap, so the SPDR S&P 500 ETF will not contain small-cap stocks. Others such as iShares Russell 2000 are mainly for small-cap stocks. Bond ETFs Exchange-traded funds that invest in bonds are known as bond ETFs. They thrive during economic recessions because investors pull their money out of the stock market and into bonds There are several advantages to bond ETFs such as the reasonable trading commissions, but this benefit can be negatively offset by fees if bought and sold through a third party. Commodity ETFs Commodity ETFs (CETFs or ETCs) invest in commodities, such as precious metals, agricultural products, or hydrocarbons. Among the first commodity ETFs were gold exchange-traded funds, which have been offered in a number of countries. Commodity ETFs trade just like shares, are simple and efficient and provide exposure to an ever-increasing range of commodities and commodity indices, including energy, metals, softs and agriculture. However, it is important for an investor to realize that there are often other factors that affect the price of a commodity ETF that might not be immediately apparent. Inverse ETFs Inverse ETFs are constructed by using various derivatives for the purpose of profiting from a decline in the value of the underlying benchmark. It is a similar type of investment to holding several short positions or using a combination of advanced investment strategies to profit from falling prices. Many inverse ETFs use daily futures as their underlying benchmark Exchange-traded funds (ETFs) have gained a wider acceptance as financial instruments whose unique advantages over mutual funds have caught the eye of many an investor. These instruments are beneficial for Investors that find it difficult to master the tricks of the trade of analyzing and picking stocks for their portfolio. ETF's Scheme launched on NSE Equity Gold World Indices Debt
Financial Bear 3X Shares (FAZ) Short Financial ETF
[Bear ETF] http://www.StockMarketFunding.com Shorting Financials UltraShort Financial Bear 3X Shares FAZ How to profit from the decline in financial stocks when banking stocks decline through this ETF
Muathe.com Bear ETF CRASH Warning!
http://www.muathe.com/ http://twitter.com/muathe [Follow My FREE Daily Blog] http://tinyurl.com/29evq8 [ Our #1 Most Visited Blog On StockCharts.com ] All INFORMATION IS FOR ENTERTAINMENT PURPOSES ONLY!! REMEMBER WE ARE IN OUR 7TH YEAR FOR A REASON!!!!! Log On To Muathe.com For More Exclusive Videos. Get The Latest Stock Picks NOW! [ Take The FREE 2 Week Trial If You Have To!! ] ACT NOW! Financial Select Sector SPDR (XLF) Ultra Financials ProShares (UYG) UltraShort Financials ProShares (SKF) UltraShort Real Estate ProShares (SRS) Direxion Shares ETF Trust Small Cap Bull 3x (TNA) Direxion Shares ETF Trust Small Cap Bear 3x (TZA) Direxion Shares ETF Trust Large Cap Bear 3x (BGZ) Direxion Shares ETF Trust Large Cap Bull 3x (BGU) FINANCIAL BEAR 3X (FAZ) FINANCIAL BULL 3X (FAS) ENERGY BULL 3X (ERX) ENERGY BEAR 3X (ERY)
Views: 1120 Eric Muathe
New Buy Signals - 3X ETF Trading - 20120607
Lots of new Buy Signals this morning. It may not fell right, but they are buy signals from a very oversold market. We got what we asked for. The market was able to take out last Friday's high. At the same time, Fear is falling, as well as the Dollar and the Bonds. Financial Stocks still lagging. -- Watch my Daily Free Stock Market Timing Newsletter - Start your trading day off on the right foot, with Stephen Whiteside's Stock Market Timing Television. This free daily video newsletter focuses on the major Indexes and ETF's, as well as the US Dollar, Crude Oil, Natural Gas, Precious Metals including Gold and Silver.
Views: 478 Stock Market Timing
Shorting ETFs With Options   EWZ Example
http://optionalpha.com - EWZ is the poster child for market randomness and volatility but its recent parabolic move may be coming to an end and we're using options to short this ETF, with a decent margin for error. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook ================== Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha.com/7steps ================== Have more questions? We've put together more than 114+ Questions and detailed Answers taken from our community over the last 8 years into 1 huge "Answer Vault". Download your copy here: http://optionalpha.com/answers ================== Just getting started or new to options trading? You'll love our free membership with hours of video training and courses. Grab your spot here: http://optionalpha.com/free-membership ================== Register for one of our 5-star reviewed webinars where we take you through actionable trading strategies and real-time examples: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 478 Option Alpha
Great Bond Trade by expert Hari Swaminathan
Using the TBT as an instrument which is the inverse ETF of the Bond Market and a double leverage inverse. To know more about Great Bond Trade - http://optiontiger.com/
Views: 431 Hari Swaminathan
Silver Market News: VelocityShares 3x Inverse Silver (DSLV) vs VelocityShares 3x Long Silver (USLV)
http://www.StockMarketFunding.com Silver Market News: VelocityShares 3x Inverse Silver (DSLV) vs VelocityShares 3x Long Silver (USLV). In this live video, we'll cover the new 3x additions on the Silver ETF (SLV). These bull/bear 3x ETF have both been deleveraged off their highs and can be good intraday trades. Please like, share, subscribe & comment! Free Trial Signup http://onlinetradinginvesting.eventbrite.com "Stock Market Google +1" http://gplus.to/TradingStocks http://gplus.to/StockMarket Video RSS Feed http://feeds.feedburner.com/tradereducation Trading Community (Free to Join) http://www.DailyStockCharts.com Follow us on Facebook: http://www.facebook.com/OnlineTradingPlatform Tags "Stock Market" "Technical Analysis" "Market Commentary" "Market Trend" "Stock Trading" "Online Trading" "Day Trading" "Swing Trading" "Stock Trading Online" "Trading Stocks Online" "Online Stock Trading" "Trading Education" "Stock Chart" "Stock Market Analysis" "Trader Education" "Stock Trade" "Trading Stocks" "Stock Markets" "Stock Market News" "Financial News" "Live Stock Market" "Live Stock Trading" "Learn the Stock Market" "Stock Market Education" "Day Trading Strategies" "Stock Trading Strategies" "Swing Trade Stocks" "How to Day Trade Stocks" "Trade Stocks Education" "Trading Stocks Education" "Online Stock Trading Education" "Online Trading Education" "Online Stock Education" "Day Trader Education" "Day Trading Education" "Live Stock Market Trading" "Live Stock Trading" "Live Stock Market Trading Platform" "Live Technical Analysis" StockMarketFunding.com StockMarketFunding "Option Trading Education" Trading "Technical Analysis Education" Financial Busines News Economy "stock market trading technical analysis" "stock trading technical analysis" "stock technical analysis" "2012 Stock Market" "Stock Market 2012" google options trading education Options Trading Video premarket gap "Stock Market" "Stock Trading" "Online Trading" google options trading education Options Trading Video premarket gap "Stock Market" "Stock Trading" "Online Trading" "Options Trading" "Options Education" "Options Video" GOOG "trading options"
3 Popular Leveraged Financial ETFs in 2016 (UWTI, DWTI)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Exchange-traded funds (ETFs) that focus on a single sector can carry higher-than-average risk due to the lack of diversification within them. ETFs that magnify the gains and losses of a single sector through the use of financial derivatives for leverage can be downright risky. Leveraged ETFs are different from traditional ETFs in that they do not, for the most part, own any stocks. Leveraged ETFs invest in swaps and futures contracts to double or triple the returns on a given index. For those interested in taking a bearish position, some leveraged ETFs aim to produce the inverse of an index's returns. Those leveraged results can look very appealing when the market is rising but look disastrous when the market moves down. Consider the example provided by the VelocityShares 3X Long Crude Oil ETN (NYSEARCA: UWTI) and the VelocityShares 3X Inverse Crude Oil ETN (NYSEARCA: DWTI). The two exchange-traded notes (ETNs) seek to triple the price movements of West Texas Intermediate (WTI) crude oil, one moving in a similar direction and the other inversely. The price per barrel of WTI crude was around $100 in June 2014. Since then, the price of crude has plummeted to nearly $37 as of March 7, 2016. From June 1, 2014, to March 7, 2016, the 3X Long Crude Oil ETN is up over 550%. During the same time frame, the 3X Inverse Crude Oil ETN is down 99%. The magnification of gains and losses with leveraged ETFs can be significant. A number of leveraged ETFs exist in the financial services sector that have gained investor interest over time. Direxion Daily Financial Bull 3X ETF Direxion is an ETF provider that specializes in leveraged and inverse ETFs, and has over 70 offerings in its lineup. The Direxion Daily Financial Bull 3X ETF (NYSEARCA: FAS) is an ETF that looks to provide triple the daily return of the Russell 1000 Financial Services Index. With assets of $1.2 billion, as of March 7, 2016, it is the largest leveraged financial services ETF in the marketplace. It is also one of the most expensive. Leveraged ETFs tend to be costly due to the need to establish and re-establish positions on a daily basis. This need for constant trading and turnover has led to an annualized expense ratio of 0.95%. ProShares Ultra Financials ETF ProShares is also a big player in the leveraged ETF marketplace, offering dozens of sector, security and currency leveraged investment products. The ProShares Ultra Financials ETF (NYSEARCA: UYG) is one of the largest leveraged ETFs overall, with assets of $626 million as of March 7, 2016. Its objective is to return twice the performance of the Dow Jones US. Financials Index on a daily basis. It charges an annualized expense ratio of 0.95%. Direxion Daily Financial Bear 3X ETF The Direxion Daily Financial Bear 3X ETF (NYSEARCA: FAZ) is the converse of the Direxion Daily Financial Bull 3X ETF and looks to provide triple the inverse of the daily performance of the Russell 1000 Financial Services Index. In other words, if the index
Views: 2 ETFs