leveraged ETFs

The Big Short: Leveraged ETFs, By David Miller

The Big Short is coming to a theater near you soon, but the hedge fund industry's cool kid of the year David Miller has traded ahead of his peers by exploiting and being short of the popular ETF industry product: leveraged ETFs  and “inverse ETFs”; products that are typically powered…Read More

14 December, 2015

Leveraged ETFs Chapter 12: Levered and Lightly Levered: Which…

MarketsMuse update courtesy of extract from Olly Ludwig’s ETF.com profile of Direxion Shares’ latest levered product. Continuing in the direction of embracing RIAs, Direxion is hoping the latest incarnation will further innovate and provide investment advisors with a new tool. Here’s the opening from ETF.com’s profile…. [caption id="attachment_2906" align="alignleft" width="150"]…Read More

27 February, 2015

Fed Does Walk Back On Leveraged ETFs; Now Endorsed…

MarketsMuse editor note: For those not familiar with leveraged ETFs, before reading this special column, you’ll want to get up to speed with Investopedia’s defintion, otherwise, ETF industry experts and observers have new ammunition in which to debate the pros and cons of leveraged ETF products. If you find that…Read More

3 January, 2015

BlackRock CEO Roils ETF Audience: “Leveraged ETFs Can Blow-Up…

Courtesy of Reuters News May 28 (Reuters) - BlackRock Inc Chief Executive Larry Fink said on Wednesday that leveraged exchange-traded funds contain structural problems that could "blow up" the whole industry one day. Fink runs a company that oversees more than $4 trillion in client assets, including nearly $1 trillion…Read More

28 May, 2014
geared-etfs-sec-marketsmuse

SEC Aims To Ban Geared ETFs

The US SEC apparently has its cross-hairs on so-called 'geared ETFs,'  those high-testosterone, levered instruments that incorporate derivatives so as to deliver an advertised 2x or 3x return for certain strategies versus a typical 1:1 correlation provided by plain vanilla exchange-traded funds.  The SEC proposal would effectively ban the use…Read More

12 February, 2016
nomura suspends leveraged ETF new creations

Nomura Says Sayonara to New Leveraged ETF Creations

Sayonara City As Japan Getting Crash Course in Leveraged Returns With Nikkei ETF MarketsMuse ETF update courtesy of Bloomberg LP Oct 15--Nomura Asset Management Co. said it would suspend on Friday the creation of new shares in a large leveraged exchange-traded fund, as well as two others, citing liquidity concerns.…Read More

17 October, 2015

Leveraged ETF, ETP and Risk-Parity Schemes: Caveat Emptor

In the wake of recent weeks' volatility and pricing dislocations across the exchanged-traded product space, news media and Mutual Fund marketers are having a field day putting the feet to the fire--and those toes being torched are connected to the universe of juiced-up and levered ETF and ETN products, as…Read More

9 September, 2015

China Stock Craze Will Go A Step Further With…

In the past year alone, investors have invested more than $2 billion into ETFs that invest in China's stocks. MarketsMuse update profiles the new ETF, The Direxion Daily CSI 300 China A Sharell 2X Shares (CHAU), this ETF is the first in China-focused ETF of its kind in the US. This MarketsMuse…Read More

16 April, 2015
ETFs, solar

Solar ETFs Shine Bright

You might need some SPF 100 after the 1st Quarter. MarketsMuse blog update profiles the huge come back solar stocks and ETFs have had after a rocky year, last year. MarketsMuse blog update is courtesy of ETFTrends' Max Chen's article, "Solar ETFs Perform Radiantly in Q1". An excerpt from ETFTrends is…Read More

31 March, 2015

How One Smart Prop Shop is Trading Oil ETFs

MarketsMuse blog update courtesy of extract from 27 Feb story from ETF.com’s Elisabeth Kashner and her profile of prop trading firm Virtu, the high-frequency (HFT)“Virtu’s HFT Way To Play Crazy Oil Market”   [caption id="attachment_2917" align="alignleft" width="105"] Elisabeth Kashner, ETF.com[/caption] Would you ever sell something to yourself and pay someone…Read More

2 March, 2015

China ETFs Seeming More Like The Year Of The…

MarketMuse update courtesy of ETFTrends' Todd Shriber looking at China related ETFs.  In the Chinese zodiac, 2015 is the year of the goat, but a popular exchange traded fund tracking China’s onshore equities is getting bearish treatment. The Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (NYSEArca: ASHR), the largest U.S-listed A-shares…Read More

25 February, 2015

With Volatility Rising, Beware The Leveraged ETF

  The following extract from Forbes.com is courtesy of Forbes and their contributing writer Bill Feingold, co-founder of Hillside Advisors. Bill is an alumni of the convertible bond team at GoldmanSachs, Wellesley Investment Advisors and worked for 2 hedge funds specializing in “converts.” He’s also an alum of Wharton (MBA)…Read More

24 January, 2014

Fed issues leveraged ETF warning

Courtesy of Chris Flood Trading activity by leveraged exchange traded funds during periods of high volatility could trigger a crash in the US stock market, according to a warning by the Federal Reserve. Leveraged ETFs (LETFs) use derivatives to provide a multiple of the daily returns of an index. When…Read More

14 August, 2013

ETFtrends: Are High-Yield Bond ETFs Overvalued After Big Run?

Courtesy of John Spence Junk bond ETFs have enjoyed four solid years of returns while investors’ hunger for income-producing assets has pushed the sector’s yields down near record-low levels. As 2013 gets underway, some investors are again wondering if high-yield corporate debt is overvalued after such a strong run. The…Read More

15 January, 2013

ETF New Rules: SEC Says Derivatives for Actively-Managed ETFs…

Courtesy of Daniela Pylypczak     Back in March of 2010, the SEC began a review of the use of derivatives by ETFs, specifically actively-managed and leveraged funds. Norm Champ, Director of the SEC’s Division of Investment Management, stated that “The use and complexity of derivatives have grown significantly over…Read More

15 December, 2012

Retail ETFs: Black Friday Trading Strategies

Courtesy of Daniela Pylypczak With the 2012 holiday season just around the corner, the U.S. retail sector is already gearing  up for what could be another make-or-break year for many companies. Many retailers generate significant portions of annual revenues and profit during the holiday months of November and December, with Black Friday…Read More

20 November, 2012

Exotic ETFs Going Mainstream

Leveraged and inverse exchange-traded funds received a lot of scrutiny during the volatility of last year. But now that volatility is down and equities are on the rise, investors are more and more viewing these once exotic products as just another way to take positions on the direction of the…Read More

30 March, 2012

2 More Studies Say: ETFs NOT to Blame for…

Here's a wake-up call to critics of the ETF world: two more unrelated and just-published research studies have acquitted the ETF industry of charges leveled by critics who have claimed ETFs are at the root of heightened market volatility. In a newly-released report from the Investment Company Institute, which interrogated…Read More

23 February, 2012