ETF Trends
04-08-2008, 07:30 PM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)
http://www.etftrends.com/images/2008/04/08/alkaseltzerfizz.jpg (http://etftrends.typepad.com/photos/uncategorized/2008/04/08/alkaseltzerfizz.jpg) Exchange traded funds (ETFs) that use leverage and short-selling have the ability to reward investors with high profits, but they can also hit them hard with big losses.
They are meant for investors with a full awareness of the risks and a strong stomach, because they're going to need them as the market roller coasters. If you're trading them in the short-term, they can amplify gains when they're performing the way you hope they will.
Typically, short-selling funds are for bearish investors, or types who want to hedge an existing position against losses, since they profit when the market falls, reports Dow Jones Newswires (http://money.cnn.com/news/newsfeeds/articles/djhighlights/200804062353DOWJONESDJONLINE000386.htm). Leveraged ETFs amplify daily index moves.
A widely traded ETF such as Financial Select Sector SPDR (XLF (http://finance.yahoo.com/q?s=xlf)) gained 7% on April 1 , the first day the sector rebounded. Leveraged ProShares Ultra Financials (UYG (http://finance.yahoo.com/q?s=uyg)) seeks daily returns that give twice, or 200%, the daily performance of the Dow Jones Financials Index, gaining 12.7% in one rally. But on the flip side, the UltraShort ProShares Financial (SKF (http://finance.yahoo.com/q?s=SKF)) lost 13.5% that day.
Break out the antacids.
Among the other short and leveraged ETFs:
ProShares UltraShort MSCI Emerging Markets (EEV (http://finance.yahoo.com/q?s=eev)), down 0.9% year-to-date
Rydex Inverse 2x S&P 500 (RSW (http://finance.yahoo.com/q?s=rsw)), up 10.6% year-to-date
UltraShort Russell 2000 ProShares (TWM (http://finance.yahoo.com/q?s=TWM)), up 9% year-to-date
UltraShort Dow 30 (DXD (http://finance.yahoo.com/q?s=DXD)), up 7.3% year-to-dateRead the disclosure (http://www.etftrends.com/2005/08/rydex_disclaime.html), as Tom Lydon is a board member of Rydex Funds.
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/266621019/volatility-show.html)
http://www.etftrends.com/images/2008/04/08/alkaseltzerfizz.jpg (http://etftrends.typepad.com/photos/uncategorized/2008/04/08/alkaseltzerfizz.jpg) Exchange traded funds (ETFs) that use leverage and short-selling have the ability to reward investors with high profits, but they can also hit them hard with big losses.
They are meant for investors with a full awareness of the risks and a strong stomach, because they're going to need them as the market roller coasters. If you're trading them in the short-term, they can amplify gains when they're performing the way you hope they will.
Typically, short-selling funds are for bearish investors, or types who want to hedge an existing position against losses, since they profit when the market falls, reports Dow Jones Newswires (http://money.cnn.com/news/newsfeeds/articles/djhighlights/200804062353DOWJONESDJONLINE000386.htm). Leveraged ETFs amplify daily index moves.
A widely traded ETF such as Financial Select Sector SPDR (XLF (http://finance.yahoo.com/q?s=xlf)) gained 7% on April 1 , the first day the sector rebounded. Leveraged ProShares Ultra Financials (UYG (http://finance.yahoo.com/q?s=uyg)) seeks daily returns that give twice, or 200%, the daily performance of the Dow Jones Financials Index, gaining 12.7% in one rally. But on the flip side, the UltraShort ProShares Financial (SKF (http://finance.yahoo.com/q?s=SKF)) lost 13.5% that day.
Break out the antacids.
Among the other short and leveraged ETFs:
ProShares UltraShort MSCI Emerging Markets (EEV (http://finance.yahoo.com/q?s=eev)), down 0.9% year-to-date
Rydex Inverse 2x S&P 500 (RSW (http://finance.yahoo.com/q?s=rsw)), up 10.6% year-to-date
UltraShort Russell 2000 ProShares (TWM (http://finance.yahoo.com/q?s=TWM)), up 9% year-to-date
UltraShort Dow 30 (DXD (http://finance.yahoo.com/q?s=DXD)), up 7.3% year-to-dateRead the disclosure (http://www.etftrends.com/2005/08/rydex_disclaime.html), as Tom Lydon is a board member of Rydex Funds.
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/266621019/volatility-show.html)