ETFs

For a single day, this short ProShares ETF aims a return that is -2x that of its underlying benchmark (target), as measured from one NAV calculation to the next. Holding periods of more than one day can result in returns that are significantly different from the target return due to the compounding of daily returns, […]

The liquidity and single-stock trading characteristics of ETFs are frequently praised. They are, in fact, very similar. Isn’t it true that if an ETF doesn’t trade a particular amount of shares every day (say, 50,000), it’s illiquid and should be avoided? Wrong. From a single-stock standpoint, it’s a reasonable assumption, but with ETFs, we need

Because index-tracking ETFs track the index’s performance, one of the most important predictors of long-term returns—if not the most important—is how much it charges in fees. SPUU aims to achieve daily investment returns of 200 percent of the S&P 500 Index, before fees and expenses. For durations longer than a single day, investors should not

An inverse ETF is a type of exchange-traded fund (ETF) that profits from a drop in the value of an underlying benchmark by using various derivatives. Inverse ETFs are comparable to short positions, which entail borrowing securities and selling them in the hopes of repurchasing them at a reduced price. What is the purpose of

Small-cap exchange-traded funds (ETFs) are meant to invest in a portfolio of stocks with a market capitalization of less than $1 billion. A small-cap firm is defined as one with a market capitalization of $300 million to $2 billion. However, as some of the holdings of the ETFs listed below demonstrate, small-cap ETFs are not

A smart Beta ETF is a form of exchange-traded fund (ETF) that selects investments for inclusion in the fund portfolio using a rules-based methodology. A mutual fund that tracks an index, such as the S&P 500, is known as an exchange-traded fund, or ETF. Smart beta ETFs are based on regular ETFs, but they customize

The VanEck Semiconductor ETF (SMH) aims to replicate the price and yield performance of the MVISUS Listed Semiconductor 25 Index (MVSMHTR), which is designed to track the overall performance of companies involved in semiconductor production and equipment, as closely as possible, before fees and expenses. Is SMH a solid exchange-traded fund? SMH is naturally top-heavy

The Direxion Daily Semiconductor Bull (SOXL) and Bear (SOXS) 3X Shares aim daily investment returns of 300 percent, or 300 percent of the inverse (or opposite), of the ICE Semiconductor Index performance, before fees and expenses. There is no assurance that the funds will achieve their stated investment goals. How does the SOXL ETF function?

Gold is a one-of-a-kind asset class. The economic dynamics that influence the price of gold are distinct from those that influence the price of many other asset types, such as stocks, bonds, and real estate. Gold provides an appealing option for investors to diversify their holdings. The SPDR Gold Shares (NYSEArca: GLD) provide investors with

The SPDR S&P 500 ETF Trust, popularly known as the SPY ETF, is one of the most popular funds that tries to replicate the Standard & Poor’s (S&P) 500 index, which includes 500 large-cap and midcap American stocks. A committee chooses these stocks based on market size, liquidity, and industry. The S&P 500 is one