Leveraged ETFs
A Leveraged ETF offers the investor a simple way to buy a broad index or sector with double or triple the exposure of the underlying index. A Leveraged ETF will allow investors to put a leveraged bet on either side of the market, long or short. This means that you can buy a 2x or 3x bearish ETF which will increase when the market heads south; these are commonly referred to as inverse leveraged ETFs. Conversely, you could buy a 2x or 3x bullish fund which will increase when the market moves higher. These instruments are particularly useful for gaining exposure to the bearish side of the market in a rollover IRA or traditional IRA, where margin and short selling are restricted.
PowerShares DB Gold Double Long (DGP) $54.26
ProShares UltraShort Russell2000 (TWM) $44.28
Direxion Small Cap Bear 3X (TZA) $37.64
Direxion Large Cap Bear 3X (BGZ) $36.37
ProShares Ultra Silver (AGQ) $212.80
Trading leveraged ETFs comes with a significant amount of risk, especially if the market begins moving against you. This is why advisers recommend using a stop loss order. A trailing stop causes a stock to be sold if it falls a particular dollar amount from the most recent high.
All positions displayed are for educational purposes only and are not intended to be recommendations.
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