ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)

Last week's stock surge has caused a pullback for some of the leveraged and inverse exchange traded funds (ETFs), the same funds that were earning traders so much money.
David Penn for Trading Markets explains that one of the biggest benefits of a leveraged ETF is that traders do not have to use a margin and still get a 2-for-1 bang for their buck.
Another benefit of a leveraged ETF is that traders can bet against a market without having to sell stocks or ETFs short. Inverse ETF trading is much more simple than taking a bearish position on a sector.
ProShares and
Rydex are the primary providers of an extensive line of short and leveraged ETFs.
Take a look at these inverse ETFs that are appearing on investors' radar:
- ProShares UltraShort S&P 500 Fund (SDS)
- ProShares UltraShort QQQ Fund (QID)
- ProShares UltraCap Mid-Cap 400 Fund (MZZ)
For bullish investors, among the many leveraged funds are:
- Rydex Inverse 2x S&P 500 (RSW)
- ProShares Ultra QQQ (SSO)
- Rydex Inverse 2x Russell 2000 (RRZ)
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.
complete story here...