More ultra ETFs

[Svenwulf]

props to $costaverageman over on ET for original post. i know we have etf players, as well as cash only folks on this board, so i hope it helps. $man also cautioned about the thin volume currently on these issues.

UPW-Long Utilities 2X
SDP- Short Utilities 2X
REW-Short Tech 2X
ROM-Long Tech 2X
USD-Long Semi 2X
SSG-Short Semi 2X
DIG-Long Oil and Gas industry 2X
DUG-Short Oil and Gas industry 2X
SRS-Short Real Estate 2X
URE-Long Real Estate 2X
SIJ-Short Industrials 2X
UXI-Long Industrials 2X
RXD-Short healthcare 2X
RXL- Long Healthcare 2X
SKF-Short Financial 2X
UYG-Long Financial 2X
SCC-Short Consumer Service 2X
UCC-Long Consumer Service 2X
SZK-Short Consumer Goods 2X
UGE-Long Consumer Goods 2X
SMN-Short Basic Material 2X
UYM-Long Basic Material 2X

previously mentioned ultra index etfs:

DDM- Long Dow 30 2X
MVV- Long MC 400 2X
QLD- Long Qs 2X
SSO- Long S&P 500 2X
DXD- Short Dow 30 2X
MZZ- Short MC 400 2X
QID- Short Qs 2X
SDS- Short S&P 500 2X

good luck, and always do your due!

[blackhawkzone]

i play in etf's but would probably never use any of the 2x etf's or the funds...too much risk involved.

I think that it is better to be just spread out among the asset classes (long cap value, long cap growth, midcap growth, midcap value, etc) and that way your risk is reduced.

A great book to learn more about etf's and investing in general is
Exchange-Traded Funds For Dummies

I was very surprised at how much stuff i learned from that book, in a language that i could understand.

[clavocat]

if its too much risk, put in half the money and us a 2x ding ding!! all it is is leverage, if ur scared about a 2x trade and not about a 1x trade, you shouldnt trade unless your core trading or investing.

BTW good post Sven, now i wont need to go to profunds website

[Svenwulf]

blackhawk- just trying to help. also many folks would like to short, but do not have margin. just an alternative, as always, do your due.

clavo- of course i suggest you go check out the profund site. etfs can get murky in their holdings, imo.

[optimus25]

good stuff. i'll check them out.

[blackhawkzone]

i just read on another site that some of these ultra etf's got saddled last year with some huge capital gain distributions, which isnt the point of having an etf.

The one thorn in the ProShares story is taxes. Last year, holders of the Ultra ETFs got walloped by short-term capital gains:

Fund
Ticker
ST-Gain
LT-Gain
Dividend
Share Price
12/29/06

Ultra QQQ
QLD
$5.13986
$0.17313
$0.10837
$81.04

Ultra Dow30
DDM
$5.96495
$0.18300
$0.65286
$83.00

Ultra S&P500
SSO
$3.25215
$0.11861
$0.42631
$86.30

Ultra MidCap 400
MVV
$3.76082
$0.17208
$0.41405
$78.43




A five-dollar gain on an $80 fund is quite something, especially in a market like ETFs, where any capital gain raises eyebrows.

“It’s the nature of the beast,” explained Seale. “You get that tax-treatment when you go in to get the leverage.”

Of course, he’s right – to an extent. The ProShares funds achieve their leveraged exposure through a combination of futures and swaps. All futures positions are “marked-to-market” at year end, meaning you can’t defer capital gains, and any profits are taxed as 60 percent long-term gains and 40 percent short-term gains. Swaps, on the other hand, are taxed as 100 percent short-term gains.

http://etf.seekingalpha.com/article/27823