ETFs

Investors can profit from a falling market without having to short any securities using inverse ETFs. Speculative traders and investors looking for tactical day trades against their respective underlying indices might look at inverse ETFs. An inverse ETF that tracks the inverse performance of the Standard & Poor’s 500 Index, for example, would lose 1% […]

Compounding isn’t always a bad thing for a mutual fund’s performance. Let’s say a double-leveraged fund increases by 10% three days in a row. It would yield a 33.1 percent return. If the index increased 5% on each of those days, the leveraged three-day return would be more than double the index’s 15.8 percent return.

Exchange-traded funds (ETFs) are stocks that track assets, indices, or sectors and trade like stocks. Most securities, including ETFs, are subject to a 25% maintenance margin requirement under FINRA rules. For leveraged long ETFs, the maintenance requirement is 25 percent multiplied by the amount of leverage employed, as long as the leverage does not exceed

All leveraged investment products include significant risks for investors. 3x exchange traded funds (ETFs) are particularly dangerous since they employ more leverage in order to attain bigger returns. Leveraged ETFs may be advantageous for short-term trading, but they come with major long-term dangers. Is investing in leveraged ETFs risky? ETFs that are triple-leveraged (3x) carry

Low volatility exchange-traded funds (ETFs) have become increasingly popular among investors over the years, and these products have been key drivers of the smart beta phenomenon. That isn’t to say that investors are always flocking to low-volatility funds. In fact, data suggests that withdrawals have been a problem for ETFs like the iShares Edge MSCI

The term “ETF” stands for “exchange-traded fund.” When you invest in an ETF, your money is pooled with the money of other investors to purchase a basket of stocks or other assets centered on a certain aim. Your ETF shares reflect a stake in a collection of marijuana-related businesses when you invest in cannabis ETFs.

Remember how we said that the tax treatment of an ETF is determined by the assets it holds? This is also true of the monthly interest payments bond ETFs make to their investors. Depending on the bonds they hold, some funds can avoid paying federal or even state taxes entirely. Interest payments from sovereign bond

Remember how we said that the tax treatment of an ETF is determined by the assets it holds? This is also true of the monthly interest payments bond ETFs make to their investors. Depending on the bonds they hold, some funds can avoid paying federal or even state taxes entirely. Interest payments from sovereign bond

If municipal bonds ETFs hold exclusively tax-exempt bonds, they are normally tax-free on both the federal and state levels. However, if the municipal bond ETF includes both tax-free and taxable interest, federal and state taxes may be required. What are the tax implications of muni bond ETFs? Remember how we said that the tax treatment

The most significant distinction between ETFs and index funds is that ETFs can be exchanged like stocks throughout the day, but index funds can only be bought and sold at the conclusion of the trading day. Are index funds truly superior? Investors who prefer passive index techniques over active management have flocked to index funds