From the category archives:

Leveraged ETFs

Reverse Splits: Why Leveraged ETFs All Go to Zero

June 17, 2010

I couldn’t help but notice the press release today on the reverse splits announced for 4 more leveraged ETFs: Direxion Daily Energy Bear 3x Shares (ERY) Direxion Daily Real Estate Bear 3x Shares (DRV) Direxion Daily Small Cap Bear 3x Shares (TZA) Direxion Daily Technology Bear 3x Shares (TYP) Some Details on the Reverse Splits: [...]

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3 Protective Trades to Combat Volatility Now

May 4, 2010

With investors spooked by suspicions that the Greece bailout will be inadequate and the Euro zone debt crisis may spiral into Spain, Portugal and perhaps further, indices worldwide tumbled substantially for the first time in months, reminiscent of the 2%+ losses we were seeing daily during the financial meltdown of 2008-2009.  Seeing as how investors [...]

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New Leveraged Biotech ETFs Combine Biologics Revolution with Supercharged Returns

April 8, 2010

ProShares, the originator of dozens of other leveraged long and short ETFs has now launched a Daily 2X Return ETF for both the long and short Nasdaq Biotechnology Index.  I highlighted earlier in the week how there are several non-leveraged Biotech ETFs with varying returns due to their composition, but many of them are breaking [...]

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1 Year Post-Crash: Biggest Winners and Losers by Country, Sector

March 9, 2010

It was one year ago today that the complete capitulation of retail and institutional investors alike ended and on March 10, 2009, the money started pouring in again.  During that time, virtually all asset classes rocketed up with annual gains that haven’t been seen in decades.  For investors savvy enough to either stay the course [...]

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16 New Proshares 3X Return ETFs Coming

February 11, 2010

Proshares, the company that initially brought us several 2X daily return ETFs, is launching 16 new ETFs that will now return 3 times the daily return of the underlying indices.  The new launches will be comprised of both long and short 300% daily returns for major US indices, emerging markets and US Treasuries.  Not all [...]

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Leveraged ETF Decay Explained

January 13, 2010

While the leveraged ETF can fill a need in the day trader’s arsenal or be utilized for a once in a blue moon trend trade, they are certainly not suitable investments for an investor with a time horizon any longer than a week.  Due to the decay in share price value that occurs as a [...]

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