ETFs

First, it’s important to understand what’s going on behind the scenes with these covered call ETFs. A covered call strategy is taking a long position in a stock and then selling call options on the same asset in the same amount as the underlying long position. This will minimize the upside payoff, but it will […]

Factors are features of securities that can be used to explain risk and return. Investors can use factor ETFs to boost their returns, improve their investment performance, and reduce risk. Factor ETFs are not pure trackers; they stray from the market’s up and down movement to some extent. Because these ETFs are so new, it’s

Exchange-traded funds (ETFs) that follow the relative value of a currency or a basket of currencies are known as currency ETFs. These investment vehicles allow regular people to participate in the forex market by investing in a managed fund rather than placing individual trades. Currency exchange-traded funds (ETFs) can be used to speculate on foreign

Fixed-income ETFs are bond funds whose shares are traded throughout the day on a stock exchange. There are fixed-income ETFs that track the Bloomberg Barclays Aggregate Bond Index, as well as funds that track corporate, government, municipal, international, and global debt. Why is an ETF a fixed-income investment? Large portions of the fixed income market

The principle is straightforward. A currency-hedged ETF may be nothing more than an existing ETF, with the same components, proportions, and expense ratio, but denominated in a currency other than US dollars. The key distinction is that the currency-hedged ETF holds holdings in currency forwards, which are effectively currency futures contracts. Forward contracts allow you

Futures and options on ETFs are derivatives based on current exchange traded funds. Futures are contracts that commit investors to buy or sell shares of an underlying ETF at a certain price on or before a future date. Options, on the other hand, allow the holder the right but not the duty to trade the

Direxion Leveraged Exchange-Traded Funds (ETFs) are daily funds with 100, 200, or 300 percent leverage with the ability to handle changing markets with bull and bear flexibility. About Direxion Daily Leveraged ETFs Although there are some similarities between Direxion Daily Leveraged ETFs and non-leveraged ETFs, there are two major aspects that influence how they are

Diversified Portfolios ETFs give investors access to a variety of asset classes through a single ticker symbol. The investment objectives and risk/return profiles of these funds vary, but they often invest in a mix of equities and fixed income assets. Some ETFs with diversified portfolios also provide commodities and currency exposure. Is it beneficial to

The Schwab U.S. Broad Market ETF is an exchange-traded fund that provides investors with broad exposure to the stock market in the United States in a single investment. The Dow Jones U.S. Broad Stock Market Index is the index it follows. This index comprises a wide range of equities of various sizes, including small-, mid-,

A capitalization-weighted (or cap-weighted) index, sometimes known as a market-value-weighted index, is a stock market index whose constituents are weighted according to their outstanding shares’ total market value. Every day, the price of a single stock fluctuates, affecting the value of a stock index. In a capitalization-weighted index, the influence of a stock’s price movement