Posts filed under “Index/ETFs”

3X Exchange-Traded Funds

When we made our buy ‘em call on October 10th, we wanted to avoid single stock risk. And, we wanted to have prudent exposure, while still maintaining some cash levels. Our solution was to deploy enough cash into 2 to 1 leveraged funds on the S&P (SSO) and the Nasdaq 100 (QLD) so that our managed accounts were 50% cash, and 100% effective market exposure. That worked out well.

Now, along comes an even more aggressive ETF: Triple upside and downside exposure. I have no opinion of these, as I have not really worked out the usages of this. It does seem a bit excessive, and my friend Paul absolutely hates them.

Here is the full run of triple leverage ETFs. I wonder if Rydex will come out with a competitive product or not.

Fund Name . . . Symbol . . . Benchmark . . . Leverage

Direxion Bull Funds

•  Large Cap Bull 3x
(BGU) Russell 1000 Index 300%

• Small Cap Bull 3x
(TNA) Russell 2000 Index 300%

• Russell 1000® Energy
(ERX) Energy Bull 3x Shares Index 300%

• Financial Bull 3x Russell 1000 Financial Services Index
(FAS) 300%

Direxion Bear Funds

• Large Cap Bear 3x
(BGZ) Russell 1000 Index -300%

• Small Cap Bear 3x
(TZA) Russell 2000 Index -300%

• Russell 1000 Energy
(ERY) Energy Bear 3x Shares  Index -300%

• Financial Bear 3x Russell 1000 Financial Services Index
(FAZ) -300%

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Previously:
Paul Disses the Triple Leverage ETF (Video)

http://www.ritholtz.com/blog/2008/11/triple-leverage-etf/

10 Bullish Charts, Signals, Indicators (October 10, 2008)

http://www.ritholtz.com/blog/2008/10/10-bullish-charts-signals-indicators/

Source:
Innovative Funds Benchmarked to Help Advisors and Investors Seeking to Outperform
Nov 03, 2008 11:41 ET

http://www.marketwire.com/press-release/Direxion-Funds-916219.html

Category: Index/ETFs, Markets, Trading

Paul Disses the Triple Leverage ETF

Nearly every sector of the financial world is mid-way through a painful unwinding of all things leverage. That’s right, I said nearly every sector. Triple-levered ETF funds have just launched and my guest blogger and investor Paul Kedrosky calls them ticking time bombs waiting to explode.

Why the market likes them, and Kedrosky hates them in the clip.

Source:
When Exchange Funds Go Bad
Sarah Lacy
Yahoo Tech Ticker Nov 05, 2008 02:00pm

http://finance.yahoo.com/tech-ticker/article/107044/When-Exchange-Funds-Go-Bad

Category: Index/ETFs, Markets, Video

Race to Call the Bottom

No wonder Wired wrote:

That said, your blog will still draw the Net’s lowest form of life: The insult commenter. Pour your heart out in a post, and some anonymous troll named r0rschach or foohack is sure to scribble beneath it, “Lame. Why don’t you just suck McCain’s ass.” That’s why Calacanis has retreated to a private mailing list. He can talk to his fans directly, without having to suffer idiotic retorts from anonymous Jason-haters.

Category: Financial Press, Index/ETFs, Markets, Psychology

S&P 500 Review

http://www.businessweek.com/magazine/content/02_50/b3812104.htm

Category: Index/ETFs, Markets, Quantitative, Short Selling, Technical Analysis

Kraft Foods to Replace AIG in Dow

Wow, that didn’t take long . . . effective September 22 (Monday).

AIG, which joined the Dow in 2004, is the latest in a series of disastrous Dow picks: Microsoft, Intel, and Home Depot . . .

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Read More

Category: Index/ETFs, Markets

The S&P 381 and Other Oddities

Category: Index/ETFs, Markets

S&P500: Better than BRICs!

Category: Index/ETFs, Investing, Markets, Trading

When Does GM Get Kicked Out of the Dow, part II

Category: Financial Press, Index/ETFs

Barron’s Asks: Bear Market Rally?

Category: Index/ETFs, Technical Analysis, Trading

Odd Data Point: Tech Passes Finance in SPX

Category: Earnings, Finance, Index/ETFs, Markets, Valuation