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

Consider the risk as well as the potential return when determining whether to invest in stocks or an ETF. When there is a broad dispersion of returns from the mean, stock-picking has an advantage over ETFs. And, with stock-picking, you can use your understanding of the industry or the stock to gain an advantage. In

The gold market is now bullish, and now is a wonderful time to invest in ETFs since you may profit as prices climb steadily every day. Here are some pointers to consider if you want to invest in gold ETFs: If you want to invest big amounts of money or trade frequently, gold ETFs are

ETFs can hold a variety of assets, including equities, commodities, and bonds; some are exclusive to the United States, while others are global. When compared to buying equities separately, ETFs have lower expense ratios and lower broker commissions. Do ETFs count as stocks or bonds? An exchange traded fund (ETF) is a collection of securities

High return on investment ETFs can be a great way to diversify your portfolio. So, if they’re in a taxable account, you’ll have to pay taxes on them each year. It is a non-issue if the monies are in a tax-deferred account (IRA, 401K, etc.). Is it possible to survive off ETF dividends? The most

Because it is exchanged on an exchange like stocks, an ETF is termed an exchange traded fund. As shares are purchased and sold on the market, the price of an ETF’s shares will fluctuate during the trading day. Mutual funds, on the other hand, are not traded on a stock exchange and only trade once