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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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