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.
VelocityShares Daily 2x VIX ST (TVIX) $55.54
Profit Target (20%): $66.65
Trailing-Stop (ATR x 2): $14.24
PowerShares DB Gold Double (DGP) $67.31
Profit Target (20%): $80.80
Trailing-Stop (ATR x 2): $5.60
ProShares Ultra Silver (AGQ) $224.30
Profit Target (20%): $269.20
Trailing-Stop (ATR x 2): $32.20
Direxion Emerg Mkts Bear 3X (EDZ) $23.86
Profit Target (20%): $28.65
Trailing-Stop (ATR x 2): $4.34
ProShares UltraShort Crude Oil (SCO) $57.76
Profit Target (20%): $69.30
Trailing-Stop (ATR x 2): $7.94
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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