What’s A Leveraged Etf And What Makes It Dangerous? | The Great Debate

Bottom Line While Russian ETFs are turning around this month driven by cheap valuation and the gas deal, the long-term outlook remains bleak given the ongoing geopolitical tensions in Russia. This is especially true as both the Russian funds carry a Zacks ETF Rank of 5 or ‘Strong Sell’ rating, suggesting that these would underperform the broader market over a one-year period. On the other side, more information the China ETF has a decent Zacks ETF Rank of 3 or ‘Hold’ rating, suggesting room for upside. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days .
Source: http://www.nasdaq.com/article/gas-deal-fuels-chinarussia-etfs-etf-news-and-commentary-cm357825

The benefits of ETNs are that they provide access to markets, industries, indexes and asset classes that are unavailable to the individual investor through mutual funds, ETFs or direct investment. The ELEMENTS Morningstar Wide Moat Focus ETN (WMW) is one such ETN, tracking the Morningstar Wide Moat index. A wide-moat company is one that has a sustainable return on invested capital that exceeds the cost of capital and offers a sustainable competitive advantage. The Wide Moat Index is comprised of the common stocks of the 20 eligible companies within the Morningstar Wide Moat universe that have the highest ratio of fair value to stock price.
Source: http://finance.townhall.com/columnists/dougfabian/2014/05/31/these-three-small-etf-providers-offer-alternative-approaches-n1845597

So, whats the difference between regular and leveraged ETFs? Regular ETFs are designed to track the price of a specific set of securities, taking the place of traditional mutual funds that focuses on particular investment sectors or classes of stock. ETFs started in stocks, particularly indexes, but now cover all types of assets.In this way they are similar to a mutual or index fund, but can be bought or sold like a stock. Regular ETFs, particularly the ones that track broad indexes like the S&P500, are pretty vanilla financial products. Sure, an index fund might be slightly better for achieving individual investment objectives, but ETFsgenerally have much lower fees than actively managed mutual funds.
Source: http://blogs.reuters.com/great-debate/2014/05/30/whats-a-leveraged-etf-and-what-makes-it-dangerous/

SLVs popularity was somewhat surprising given the weakness in gold and gold miners ETFs. The most searched single-country ETFs were two funds that suffered drubbings on the week. Investors distaste for Egypts poll results sent the Market Vectors Egypt Index ETF ( EGPT ) tumbling more than 7%, a loss that was accrued on Thursday and Friday. EWZ declined 2.1% Friday, falling below its 50-day simple moving average.
Source: http://finance.yahoo.com/news/most-searched-etfs-sector-surprises-123039369.html

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s