Seeking Alpha

ETF Daily News'  Instablog

ETF Daily News
Send Message
ETF Daily News is a subsidiary of WBC Media, LLC, a New Hampshire company set up to run financial news and opinion on “Exchange Traded Funds.” ETF Daily News delivers its content over the Internet.
My company:
ETF DAILY NEWS
My blog:
ETF Daily News
My book:
The Little Black Book Of Billionaires Secrets
  • Competition Is Heating Up In The Triple Leveraged ETF World (FAZ, FAS, UPRO, SPXU) 1 comment
    Jun 27, 2009 2:37 PM | about stocks: FAZ, FAS, UPRO, SPXU

    The world of leveraged ETF’s has been heating up as Proshares has launched their two new triple ETF’s.  Direxion a competing sponsor already has several leveraged products in this field.  The triple leveraged products have become extremely popular to investors, as it allows them to trade with leverage at a  low expense.  These ETF sponsors seem to see a trend happening and don’t want to miss out on opportunities in potential profits from investors.

    These leveraged ETF’s have also raised many eyebrows.  FINRA -The Financial Industry Regulatory Authority   has recently urged caution to the financial industry on leveraged and inverse ETF’s.  FINRA warned financial brokers and advisers about their fiduciary responsibilities to investors, on how these inverse and leveraged ETF’s are difficult to understand and are not meant to be held for long periods of time. Education is key to these products and retail investors currently lack knowledge in them. 

    FAZ and FAS are long and short 3X ETF’s sponsored by Direxion that track the Russell 1000 Financial Services Index.  These two ETF’s together frequently trade 400+ million shares a day, proving there is a ton of money at stake in this business. 

    The new long/short 3X ETF’s that Proshares has launched will track the S&P 500 Index.  To spice things up, Proshares has launched the new 3X  ETF’s with four letter symbols UPRO & SPXU.  This will add some confusion because currently most ETF’s are three letter symbols.

    Disclosure: No positions

Back To ETF Daily News' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Bob3x
    , contributor
    Comment (1) | Send Message
     
    For a daytrader - What do you think about buying FAS and when it takes a down turn, sell it and purchase FAZ and ride it up until it takes a downturn and purchase FAS again? I figure that there are about 8 - 10 cycles during a day to trade these two stocks.

     

    RJ - Los Angeles
    28 Jun 2009, 01:39 AM Reply Like
Full index of posts »
Latest Followers

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.