Search results “Leveraged etfs long term”
The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4
Leveraged ETFs - Opportunities, Risks and Dangers. http://www.financial-spread-betting.com/Exchange-traded-funds.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! How risky are leveraged exchange traded funds? These instruments are only for day trading or holding positions for a few days at most. When buying into a leveraged ETF not only are there trading costs but in some cases you also have the interest expense of the debt used to achieve the actual leverage. But why are leveraged ETFs dangerous? The issue with leveraged ETFS is that you can end up losing all your money while waiting for the ETF to move in your direction. Let's suppose that over 50 trading days, half of those days the index you're tracking moves up by 5%, and half of those days it moves down by 5%. If you are investing in a normal unleveraged exchange traded fund, at the end of that time you will still have 93.9% of your capital. As such, you can absord that and wait till it reverses. But if you're in a 3x leveraged ETF, on down days your ETF will go down by 15%. On positive days it will go up by 15%. One up-down cycle and you end up with 2.25% less of your capital. (1.15*0.85=0.9775.). Two up-down cycles, and you have lost 4.45%. After the 50 days period only 56.6% of your capital remains. Can you really recover? That's the big issue - if an index doesn't go anywhere and is range-bound, the leveraged ETF will end up underwater. And of course if the index moves in the opposite direction to your 'bet', you could end up getting wiped out rapidly. As such you only win if a move up happens swiftly... So, that's the big problem: if an index treads water, the leveraged version will lose money. And of course, if the index goes down substantially, as it could in a bear market, you could get quickly wiped out. Basically, you only win if a move up happens quickly, which I assure you is not always the case. So is a 3x ETF a bad investment? If you get the direction right, it’s a good investment. Due to the derivatives used in the composition of the ETF, they tend to under perform their leverage number. IOW, a 3x ETF might return 2.25 or 2.5 or 2,75 times the underlying index but that’s still significantly better than a 1x ETF. There’s also the issue of beta decay. In terms of achieving the leverage return, 2x and 3x leveraged ETFs are effective for short term trading. Just remember that leverage is a double (or triple edged) sword. If you can make 3X if right, you can lose 3X if wrong. In this series: ETFs, What is An Exchange Traded Fund? Part 1 🙌 https://www.youtube.com/watch?v=DUv4A-y52jw Main ETFs to Trade Part 2 👍👌 https://www.youtube.com/watch?v=4zecElizm4g What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍 https://www.youtube.com/watch?v=zfPDpq4BaUs The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4 https://www.youtube.com/watch?v=M7dNVJeQ9cE
Views: 6206 UKspreadbetting
Leveraged ETFs Explained - Are They Really A Good Way To Earn Money?
Articles: http://cryptolovers.online/stocks-leveraged-funds-the-devils-temptation/ NEW CHANNELS: TechStockHouse: https://www.youtube.com/channel/UC8IzbdgN-IDXlWH0dNdgGag TechCryptoHouse: https://www.youtube.com/channel/UCp7Gqpl9Kqiggr_Rs03X5pA Pledge $1 and BECOME A TECHCASHHOUSE DWELLER TODAY! https://www.patreon.com/techcashhouse THE NEW TWITTER: STOCK POLLS, NEWS, ETC. https://twitter.com/TechCrackHouse_ Buy, sell, what should be done? Keep it tuned right here on the TechCashHouse for news, tips, and the best ways to invest. Please subscribe and like, it helps a lot. I upload more regularly than Hillary checks her email. BECOME A CASHHOUSE DWELLER TODAY! Robinhood Download Links: IOS: https://itunes.apple.com/us/app/robinhood-free-stock-trading/id938003185?mt=8 Android: https://play.google.com/store/apps/details?id=com.robinhood.android&hl=en Robinhood Main-page: https://www.robinhood.com/ Acorns Download Links: IOS: https://itunes.apple.com/us/app/acorns-invest-spare-change/id883324671?mt=8 Android: https://play.google.com/store/apps/details?id=com.acorns.android&hl=en&gl=us Acorns Main-page: https://www.acorns.com/ I AM IN NO WAY A MARKET PROFESSIONAL; USE YOUR OWN JUDGEMENT WHEN PURCHASING STOCKS AND OTHERWISE. I AM NOT RESPONSIBLE FOR AND GAINS OR LOSSES THAT YOU MAY EXPERIENCE. THE MARKET IS INHERENTLY RISKY, AND YOU SHOULD ONLY INVEST WHAT YOU ARE COMPLETELY WILLING TO LOSE.
Triple leveraged Index ETFs Myths and Realities
leveraged ETFs Myths and Realities
Views: 2945 Synapse2k
Death by Leveraged ETFs - Warning About Exchange Traded Funds!
Exchange traded funds (ETFs) are just like stocks, but there is a major problem with them. Subscribe: https://www.youtube.com/user/PeterLeedsPennyStock Do not buy or sell any ETF until you watch this warning. Subscribe to our channel, to learn more about investing, penny stocks, and profits from high-quality, low-priced shares: https://www.youtube.com/user/PeterLeedsPennyStock ETFs are a lot like a mutual fund, in that they hold a group of investments (stocks + bonds). The beauty is that they trade just like stocks, and have lower commissions, and you can trade any time. Each ETF is designed to mimic a specific investment or group of investments. So, for example, GLD attempts to copy the movements of gold prices. If you think gold will go higher, you can buy GLD. If you believe the economy of Africa will grow, you could buy AFK, if you want more exposure to Germany, you could purchase EWG, and so on. Warning number 1, and this isn't what I need to tell you about in this video, sometimes trading can be thin, so use limit orders rather than market orders if you are going to trade them, especially true in the very early or very last trading minutes each day. Anyway, here is the problem with ETFs which can cost you a huge amount of money. ETFs are actively managed, being continually rebalanced so that their holdings reflect the intention of the ETF. For example, INDA is meant to mirror the action of a wide range of companies in India. It involves 85% of the Indian stock market, and needs to be adjusted on a daily basis to make sure it is staying true to its purpose. With these adjustments comes a small management fee. Typically this expense will be very small, usually a fraction of a percent, and is typically less than a common mutual fund. - straight-up ETFs are pretty good, but leveraged ETFs will destroy your investment. - if tracking oil prices, USO will move very similarly to oil. If oil goes up 10%, the ETF may only rise 9.8%. This slight loss is barely noticeable, and it is called slippage. Not a huge deal, but this happens every day. When you get into leveraged ETFs, this becomes a major problem. For example, UWTI is designed to provide 3 times the return of WTI oil. If WTI goes up 1%, UWTI tries to rise 3%. Likewise, if WTI falls 1%, UWTI would fall about 3 times that much. The problem is slippage. In reality if WTI rises 2%, UWTI is designed to climb three times that much, so 6%. However, in reality it may only gain 5.95%, for example. Then, if WTI falls 2%, it is back to where it originally started, but UWTI is designed to fall 3 times that amount, or 6%. In reality, it will likely fall a tiny bit more than 6. These slight shortfalls get applied every day, so if you lose a fraction of your investment, again and again and again, you are suffering a slow bleed. You probably wouldn't even notice it on any single day, but that is why the long term charts of any leverage ETF are always in a slow, steady downtrend. ETFs, especially the leveraged ones, are great for making a very short term call, but should never be used for long term investing. For example, if you expect oil prices to spike, you could play it by buying UWTI, but do it only as a short term trade. If you hold for weeks or months, you will almost certainly lose . Protect yourself when trading ETFs. Consider avoiding buying or selling in the first few or final few minutes. And do not hold ETFs for extended lengths of time, especially the leveraged ones. . Get More From Peter Leeds: YouTube: https://www.youtube.com/user/PeterLeedsPennyStock HOME = https://www.peterleeds.com/ .... Facebook = http://bit.ly/1t4Tifo Twitter = https://twitter.com/peter_leeds Penny Stocks for Dummies = http://amzn.to/1WyGaLo ... E-Mail: [email protected] Phone: 1.866.695.3337 .
Views: 33748 Peter Leeds
3 Rules for Investing in Leveraged ETFs
Looking to buy ETFs that offer magnified exposure to stocks, bonds, or gold? Before diving in head-first, Ron DeLegge, Chief Portfolio Strategist @ ETFguide explains how leveraged ETFs work. Ron also gives you three important rules for using these high octane funds. Take Ron’s Portfolio Report Card challenge and if you score an “A” you win $100! Go to http://www.etfguide.com/portfolio-report-card
Views: 10884 ETFguide
HOW TO GET 300% MARKET RETURNS: Beating the Market with Leveraged ETFs
I hope you guys enjoyed this video and a little bit of a guide to leveraged ETFs. Please let me know what you think about this investment strategy, and subscribe if you haven't already! ****GET A FREE STOCK WHEN YOU SIGN UP FOR ROBINHOOD**** : https://robinhood.com/referral/chaseg54/?_branch_match_id=465664332977672014 Sign Up for M1 Finance Here: http://mbsy.co/l9p6d Sign up for Bitconnect here: https://bitconnect.co/?ref=cghesquiere Disclaimer: I am by no means a market professional so do your own research before investing in stocks! My suggestions are not guaranteed to go up in value. Tags: leveraged etfs,etfs,how to beat the market,beating the market,guide to leveraged etfs,beat the market with leveraged etfs,young and intelligent money investing,etf,stock,stock market,how to get triple market returns,tqqq,spxl,guide to leveraged etfs,what are leveraged etfs,what do i do to beat the market,stock market,what is a leveraged etf,how to get big returns with leveraged etfs,how to get big returns in etfs,big returns with leveraged etfs,exchange traded
What makes a levered ETF have unexpected payoffs in the long term?
A look at how maintaining a constant leverage ratio, causes the performance of a levered ETF to diverge from simply levering up the underlying on your own.
Views: 6079 Symmetricinfo
How to Use Leveraged ETFs
A set of defined reactions is the best way to use the high volatility of leveraged ETFs for greater profit. Contrary to media warnings, leveraged ETFs beat the market over many time periods even with a simple buy-and-hold approach. A look at my performance tables proves it. We can improve upon their performance by running 2x and 3x leveraged ETFs through defined reactions that extract profit from their higher highs and add capital to their lower lows. ___________________________ Want more information like this? Please subscribe to this channel! To review the long-term performance of buying and holding leveraged funds, please visit my Strategies page: http://jasonkelly.com/resources/strategies/ Thank you for watching!
Views: 10809 The Kelly Letter
Everything You Need To Know About Leveraged ETFs Explained
The Everything You Need To Know About Leveraged ETFs video will cover; - Daily rebalancing and example - Performance and trading fees - Problems with longer term index tracking - Volatility drag - A real world example covering the in-depth details of the product Leveraged ETFs are one of the few products readily available to retail investors that remains relatively uncovered by mainstream media. A combination of both incompetence and misinformation leads many investors into a scenario where they purchase an LETF, the underlying index increases, and they end up losing money. This video provides a comprehensive introduction to the product and its failings as a longer term investment vehicle. As always, it is best to speak with a registered financial advisor or contact the provider of the LETF for further questions. If you have any questions, comment below and hopefully I can help you better understand LETFs. For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories. http://seekingalpha.com/author/robert-bezede/articles#regular_articles
Views: 263 FinanceKid
Leveraged ETFs: How to Triple Your Returns
Use Leveraged ETFs to double or triple your returns! Try them out in our Fall Trading Contest! https://www.wallstreetsurvivor.com/register?utm_source=Youtube&utm_medium=VideoLink&utm_campaign=FallContest Read more about Leveraged ETFs here: http://blog.wallstreetsurvivor.com/2018/09/16/leveraged-etfs/
Triple leveraged Index ETFs Myths and Realities
leveraged ETFs Myths and Realities. Leveraged ETFs - Opportunities, Risks and Dangers. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! How risky are leveraged. Shows how a levered ETF delivers on its promise to provide a multiple of the daily returns of an underlying index. 500% gains in leveraged ETFs -- is it possible? ETF investing ETFs explained stock market trading market for beginners options trading strategies Want more help? Contact me at davidmoadel.
Views: 87 Youlanda Valles
Don't Buy a Leveraged and Inverse ETF
The Investor's Advocate on Leveraged and Inverse ETFs
Top 10 Vanguard ETFs - Get Rich carefully!  [Passive Investing]
We're once again talking Vanguard and ETFs! I love ETFs and these are cheaper than any other and pays massive dividends. Buy buy buy! visit www.investingforall.net for more information on how to invest in stocks. Investing for all is a project seeking to teach every and anyone how to get started and investing in the stock market. I want to tell anyone looking to start investing in stocks that they are a safe investment alternative and will pay off in the long run. Stocks go up and down, don't invest simply based on what you hear or see in my videos.
Views: 34447 Investing for all
Leverage ETFs Explained:Why don't Leveraged 2x and 3x ETFs match the index results?
Ever wonder why leveraged etfs don't have the same percentage return? How do 3X ETF, 2X ETF, and Bear Market etfs move compared to an underlying index. See why in this video tutorial which in simple terms shows investors leveraged etfs work, how they are priced, and why they may or may not do what you thought.
Views: 7303 TheTradesurfer
What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍
Inverse and Leverage ETFs. Let's talk about leveraged exchange traded funds. http://www.financial-spread-betting.com/Exchange-traded-funds.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! An inverse ETF basically inverses the performance so if you've got an inverse of the S&P500, if the S&P500 goes up then the S&P500 goes down. A leveraged ETF magnifies the gain - it aims to make 2 or 3 times the movement of the underlying asset it is tracking. You can also have an inverse leveraged ETF... TBT - aims to do twice the inverse of the 20+ Year Treasury Bond SDS - aims to do twice the inverse of the S&P 500 i.e. UltraShort S&P500 ETF TZA - aims to do triple the inverse of the Small Cap i.e. Direxion's Daily Small Cap Bear 3X Shares FAZ - aims to do triple the inverse of the Financials i.e. Direxion Financial Bear 3X (FAZ) ETF UVXY - VIX ETF but double. WARNING 2x & 3x ETFs, especially inverses, do not always follow what it says on the tin. Be Wary. In this series: ETFs, What is An Exchange Traded Fund? Part 1 🙌 https://www.youtube.com/watch?v=DUv4A-y52jw Main ETFs to Trade Part 2 👍👌 https://www.youtube.com/watch?v=4zecElizm4g What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍 https://www.youtube.com/watch?v=zfPDpq4BaUs The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4 https://www.youtube.com/watch?v=M7dNVJeQ9cE
Views: 1472 UKspreadbetting
Are 4x Leveraged ETFs a Good Idea?
People are worried about the possible SEC approval of 4x leveraged ETFs, but you should not 400% leverage concern you. In this podcast, I explain why quadruple leverage is no better or worse than plenty of other funds already on the market in the leverage ETF world. Please Pick a time stamped topic below: (0:30) - ForceShares: Quadruple Leveraged Funds? (2:45) – 3x Funds With Big Swings Right Now (4:40) – Are the S&P 500 4x Funds the Limit? (6:55) - Why is There So Much Concern With 4x Funds? (8:10) - Episode Roundup: [email protected]
Views: 324 Zacks Podcasts
Trading Leveraged ETFs For Max Profits
Trading Leveraged ETFs For Max Profits walks through the risks and benefits of trading these highly speculative 2x and 3x leveraged bull and bear ETFs. ► Subscribe to our YouTube channel: http://bit.ly/2kLE2Pz ORIGINAL ARTICLE LINK which has been updated with new examples, a section on volatility decay, contango impact, and more: http://www.thetraderisk.com/trading-leveraged-etfs-for-max-profits SKIP AHEAD: What are leveraged ETFs? 1:44 How are leveraged ETFs constructed? 3:24 What are the risks of trading leveraged ETFs? 5:09 What are the benefits of trading leveraged ETFs? 13:36 My strategy for trading leveraged ETFs 17:55 Universe of leveraged ETFs 26:00 At The Trade Risk, we help traders make money in the stock market. Learn More: https://www.theTradeRisk.com Newsletter: https://www.theTradeRisk.com/newsletter Trade Alerts: https://www.theTradeRisk.com/swing-trade-alerts Market Dashboard: https://www.theTradeRisk.com/market-health-dashboard Breadth Cycles: https://www.theTradeRisk.com/stock-market-breadth-cycles Follow Us: https://www.twitter.com/evanmedeiros Thank you for watching! #TheTradeRisk #ETFs #LevergedETFs
Views: 19163 The Trade Risk
Leveraged And Short ETFs: Separating Fact From Fiction
Leveraged and short exchange-traded funds have emerged as some of the most popular trading tools in Europe. The funds give investors a simple, liquid means of hedging and/or amplifying their exposure to the market. Or do they? Due to the effects of compounding, the long-term returns of leveraged and short ETFs may not match up with investor expectations. In this webinar, Paul Amery, Managing Editor of ETF.com, will explain how European leveraged/short ETFs work, how they can be used in a portfolio and what investors must look out for. He'll run through the options currently available to investors, discuss the pros and cons of each approach and consider other alternatives to achieving hedged exposure.
Views: 42 ETF.com
🔴Holding the 3X Leveraged ETF TQQQ UDOW and TNA for QQQ Dow Jones & IWM
Holding the 3X Leveraged ETF TQQQ UDOW and TNA for QQQ Dow Jones & IWM http://www.wisdominvestor.com Subscribe for Free
Views: 475 Wisdom Investor
Here's why I hate leveraged ETFs (UVXY, NUGT, SSO, UWTI, ETC...) stock trading
Let me show the Correct Way to Trade Bond Futures etf stock trading etfs
Views: 1476 Jonathan Rose
3x ETFs Guide: Time Decay, Trading Strategy, Leverage
My Technical Analysis Master Course Is Back Online! Get The Course Today Here: http://bit.ly/TheRightTraderCourse Make Sure To Use Code: "YT20" For $20 OFF :) Follow Me on StockTwits: https://stocktwits.com/TheRightTrader Follow Me on Twitter: https://twitter.com/TheRightTrader My Website: http://www.therighttrader.com/ Article in Video: http://www.therighttrader.com/3x-etf-decay-time-triple-leveraged-trade/
Views: 3290 The Right Trader
Understanding Inverse ETFs
http://optionalpha.com - A simple explanation to understanding Inverse ETFs. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 24902 Option Alpha
How does a levered ETF work?
Shows how a levered ETF delivers on its promise to provide a multiple of the daily returns of an underlying index
Views: 18374 Symmetricinfo
Bogle: The Good--and the Bad--of ETF Trading
Some investors are clearly using ETFs as trading vehicles, but what about advisors who seem to be building portfolios consisting of ETFs as long-term building blocks? As part of the annual Bogleheads event, Christine Benz sat down with Jack Bogle to get his take on this topic and more. For all Morningstar videos: http://www.morningstar.com/cover/videocenter.aspx
Views: 2543 Morningstar, Inc.
$4 Trillion, 4 Basis Points, and 4 Times-Leveraged ETFs
Ben Johnson says the ETF asset milestone shows us how far the field has come. Plus, how to stay smart amid price wars, and how product development has gone wild. For all Morningstar videos: http://www.morningstar.com/cover/videocenter.aspx
Views: 876 Morningstar, Inc.
3x Leveraged ETF Decay Explained Via NUGT
Some visual real-world examples of the decay suffered by 3x leveraged ETFs and how to use that decay to your advantage.
Learning About Leveraged ETFs
Leveraged ETFs are incredibly risky. Tyler Gellasch joins Bart Chilton to give us the lowdown on these ETFs, Follow us on Twitter: https://twitter.com/RT_BoomBust https://twitter.com/bartchilton?lang=en Check us out on Facebook -- and feel free to ask us questions: http://www.facebook.com/BoomBustRT
Views: 410 Boom Bust
3 Rules for Investing in Bond ETFs
Robert Smith, chief investment officer at Sage Advisory, explains how he has positioned clients for the next Fed move, and how he picks exchange traded funds. Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
Views: 9118 Wall Street Journal
How To Trade Inverse ETFs | Swing Trading For Beginners
SUBSCRIBE: https://www.youtube.com/channel/UCiIarDNLrAA1xWsbHWW2ehQ?sub_confirmation=1 *Get $10 By Buying Crypto On Coinbase: https://www.coinbase.com/join/59fb1b7a032d7700e013f501 *Ledger Nano S: https://www.ledgerwallet.com/r/1d26 *Jungle Scout: https://affiliate.junglescout.com/idevaffiliate.php?id=2683 SOCIAL MEDIA Instagram: https://www.instagram.com/stas_serfes_entrepreneurship/ In this video I go over how I made $350 profit today trading $GUSH. If you found value in this video, make sure to leave a like, comment, and subscribe for future content!!
Views: 3379 Stas Serfes
Main ETFs to Trade Part 2 👍👌
Main ETFs to trade http://www.financial-spread-betting.com/Exchange-traded-funds.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! There are probably hundreds if not thousands of ETFs but a number of them aren't very liquid, however I've picked up 8 of the top volume ETFs. An ETF tracks the underlying or a basket of stocks or a broad sector. VXX - this tracks the short-term VIX futures. VIX is a volatility index, based on options (expectation of volatility). Instead of trading VIX futures which is a complex area, an easier way is to trade the VXX ETF. When people are frightened you will see a volatilty spike / VIX spiking up and vice versa. SPY - this tracks the S&P 500 ETF i.e. the top 500 American companies - very handy to use if you are bullish or bearish on the USA economy. EEM - Emerging Markets ETF - basket of stocks - China, Brazil..etc GDX - an ETF tracking the Gold Miners GLD - an ETF tracking the Gold price. QQQ - that is the Nasdaq 100 - tech is volatile and QQQ is a good way to get exposure to the Nasdaq 100 USO - an ETF tracking the Crude Oil price. IWM - an ETF tracking Russell 2000 - tracking biggest 2000 stocks in the USA - quite volatile potentially. EWZ - Brazil ETF fund - exposure to Brazil - will pick up Brazilian stocks In this series: ETFs, What is An Exchange Traded Fund? Part 1 🙌 https://www.youtube.com/watch?v=DUv4A-y52jw Main ETFs to Trade Part 2 👍👌 https://www.youtube.com/watch?v=4zecElizm4g What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍 https://www.youtube.com/watch?v=zfPDpq4BaUs The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4 https://www.youtube.com/watch?v=M7dNVJeQ9cE
Views: 969 UKspreadbetting
ETFs, What is An Exchange Traded Fund? Part 1 🙌
What is an ETF? What is an exchange traded fund? http://www.financial-spread-betting.com/Exchange-traded-funds.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! An ETF is an exchange traded fund. This is a basket of stocks or a basket of assets wrapped up and priced as one item. You have for instance something like SPY; this is an S&P 500 ETF - this is an exchange traded fund that tracks the actual movements of the S&P 500. If the S&P500 goes up 1% the ETF will go up 1%. It is quite more cost effective to buy ETFs than futures. We can also have groups of commodities - for instance USO that tracks oil. (USO) is in fact an exchange-traded security who purpose is to track the daily price movements of West Texas Intermediate ("WTI") light, sweet crude oil... In this series: ETFs, What is An Exchange Traded Fund? Part 1 🙌 https://www.youtube.com/watch?v=DUv4A-y52jw Main ETFs to Trade Part 2 👍👌 https://www.youtube.com/watch?v=4zecElizm4g What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍 https://www.youtube.com/watch?v=zfPDpq4BaUs The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4 https://www.youtube.com/watch?v=M7dNVJeQ9cE
Views: 653 UKspreadbetting
Direxion 2X and 3X Leveraged and Inverse ETFs
Why trade leveraged and inverse ETFs?
Views: 46946 Direxion ETFs
500% gains in leveraged ETFs -- is it possible? ETF investing ETFs explained stock market trading
500% gains in leveraged ETFs -- is it possible? ETF investing ETFs explained stock market trading market for beginners options trading strategies Want more help? Contact me at davidmoadel @ gmail . com Subscribe to my YouTube channel: https://www.youtube.com/channel/UCUoWjpemcumDyh95Z9KPEdA?sub_confirmation=1 Plenty of stock / options / finance education videos here: https://davidmoadel.blogspot.com/ Disclaimer: I am not licensed or registered to provide financial or investment advice. My videos, presentations, and writing are only for entertainment purposes, and are not intended as investment advice. I cannot guarantee the accuracy of any information provided. options trading for beginners stock market for beginners stocks for beginners stock investing stock market investing options trading strategies stock trading strategies stock investing penny stocks penny stock trading nasdaq apple twitter education rsi bollinger bands $SPY $QQQ $AAPL $TWTR SPY QQQ AAPL TWTR forex david moadel trading traders investing investors
Views: 2995 David Moadel
Leveraged ETF's - born losers, or just misunderstood? (Part 2 of 2)
Some of the leveraged funds pay dividends and have a substantial adjustment payout once each year. DXD (double inverse DOW) 'dividend' payouts for 2008... http://finance.yahoo.com/q/hp?s=DXD&a=06&b=13&c=2006&d=02&e=25&f=2009&g=v 23-Dec-08 $ 16.055 Dividend 24-Sep-08 $ 3.823 Dividend 24-Jun-08 $ 0.138 Dividend 25-Mar-08 $ 0.223 Dividend --------------------------------------------- Total divs = $20.24 Here's an actual example of buying the DXD inverse double etf, which covers the period around big dividend of $16.055....... 12/2008 Bought DXD @ 69.03 12/2008 dividend of $16.055 per share 02/2009 Sold DXD @ 74.7 All in all, it was a bonanza as I sold the stock at a profit and pocketed the big div too. By comparison, the DIA (etf tracking the DOW long) went from $89 on Dec 8th, down to $72 on Feb 24th. In conclusion.... DIA (DOW long etf) dropped 19% during the period. DXD (dbl shrt etf) gained only 5.67% but also paid out a div of 23% (based on the buy price paid) My own observations......... 1. It is true that pullbacks in the double inverse etfs lose more than they make in the previous gains...assuming that the DOW or whatever simply rose and then fell back to the same place. Short term trading is the only way to use the double etfs. 2. They are, however, extremely useful if you have any luck or talent with market timing. 3. The return is not double on a buy and hold, but most likely will become a disappointment as value erodes. Need to get some good entries and exits to avoid retracements which eat away at the returns. 4. This kind of problem is not unique to double etfs, USO (oil fund) for example has been a terrible way to pick a bottom in oil as contango (futures higher than spot) meant that USO made new lows even when the underlying oil price was well above its bottom. (My video on contango and USO) http://www.youtube.com/watch?v=QKsmaykLpvE
Views: 5928 flaskofcoffee
The Huge Danger of Investing in 3X or 2X Leveraged ETFs and the Decay Effect
Investing and holding leveraged ETFs is a sure way to lose most of your capital. ALWAYS stay away from leveraged ETFs, regardless if they are 2x or 3x leveraged.
Views: 182 Investors Heaven
New Triple Leveraged FANG ETFs: Should You Buy?
These new ETNs provide triple leveraged, upside and downside exposure to the hottest tech stocks. BMO-RM FG I3XL: https://www.zacks.com/funds/etf/FNGU/profile?cid=CS-YOUTUBE-FT-VID BMO-RM FG I3XIL: https://www.zacks.com/funds/etf/FNGD/profile?cid=CS-YOUTUBE-FT-VID Facebook: https://www.zacks.com/stock/quote/FB?cid=CS-YOUTUBE-FT-VID Apple: https://www.zacks.com/stock/quote/AAPL?cid=CS-YOUTUBE-FT-VID Netflix: https://www.zacks.com/stock/quote/NFLX?cid=CS-YOUTUBE-FT-VID Google: https://www.zacks.com/stock/quote/GOOGL?cid=CS-YOUTUBE-FT-VID Amazon: https://www.zacks.com/stock/quote/AMZN?cid=CS-YOUTUBE-FT-VID Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch
Views: 1958 ZacksInvestmentNews
How Inverse And Leveraged ETFs Actually Work - Show #027
http://optionalpha.com/show27 - In the past couple years inverse and leveraged ETFs have been some of the most highly traded securities because of their seemingly “cool” concept for speculation. I mean where else can you get such high exposure to financials or gold than with a 3X bull/bear ETF? In this session of The Option Alpha Podcast I’ll going to dig deep into how these products are both structured and priced so that you have a complete and full understanding of the “drag” they carry before investing. No this is not to say that you shouldn’t trade inverse and leveraged ETFs because I have before and will in the future. Instead, my goal is to make you smarter about how they derive their pricing so that your timeline for trading them might be adjusted or altered. I never promised this podcast would be a walk in the park, so if you are ready to be challenged and take your training to the next level then let’s get started. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook ================== Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha.com/7steps ================== Have more questions? We've put together more than 114+ Questions and detailed Answers taken from our community over the last 8 years into 1 huge "Answer Vault". Download your copy here: http://optionalpha.com/answers ================== Just getting started or new to options trading? You'll love our free membership with hours of video training and courses. Grab your spot here: http://optionalpha.com/free-membership ================== Register for one of our 5-star reviewed webinars where we take you through actionable trading strategies and real-time examples: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 2874 Option Alpha
The Pros & Cons of Using Leveraged ETFs In Your Trading & Investing
This video attempts to both debunk as well as confirm some of the negative stigmas associated with buying & holding leveraged ETFs for more than a day trade. Real-world examples are used with two of the most notorious offenders when it comes to the price decay that can result when holding a leveraged ETF for an extended period of time, LABU & LABD (3x bullish & bearish biotech ETFs) as well as NUGT & DUST (3x gold miners ETFs)
Dangers Associated With Inverse and Leveraged ETF Trading - Attorney Denver Seattle
ETFs (or Exchange Traded Funds) have become increasingly popular over the last 15 years. ETFs are typically used to track and replicate the performance of an index, such as the S&P 500, the Russell 2000, or the Dow Jones. ETFs are popular, because investors can invest in a basket of securities that provides diversification but with the simplicity of being a single stock. In recent years, many companies have also created leveraged or inverse ETFs. Leveraged ETFs try to replicate the performance of a particular index, but attempt to replicate the performance by doubling or even tripling the index. As an example, the Proshares Ultra Russell 2000 ETF seeks to double the performance of the Russell 2000 Index. Inverse ETFs also try to replicate the opposite (or even multiple opposites) of a particular index. For example, Ultrashort QQQ Shares seeks a return of two times the inverse (-2x) of the daily performance of the NASDAQ-100 Index. Leveraged and inverse ETFs can be useful investment tools for investors seeking intra-day trading. However, inverse and leveraged ETFs are often misused, by retail investors and even financial advisors. The regulators and others have long-warned the securities industry about the dangers of inverse and leveraged ETFs. These are designed to be day-trading vehicles, but often financial advisors recommend holding these ETFs in an investor’s accounts for weeks or even months. Israels & Neuman PLC is a securities law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states. Our attorneys have represented over one thousand investors against many brokerage firms in the past. www.wesuewallstreet.com
Leveraged ETFs
Time to take profits in Leveraged ETFs, 3x Leveraged ETFs featured in this morning's presentation include ProShares UltraPro S&P500 UPRO,S&P500,ProShares UltraPro QQQ TQQQ,Direxion Daily Financial Bull 3X Shares FAS,Direxion Emerging Markets Bull EDC,Direxion Daily Real Estate Bull 3X DRN,Direxion Daily Small Cap Bull 3X Shares TNA and Direxion Daily Technology Bull 3X Shares TYH. Please join us Stephen Whiteside @ http://www.theuptrend.com
Views: 9699 Stock Market Timing
Leveraged ETFs
This video explains a little about leveraged etfs and how I trade them. Leveraged etfs can give you larger gains. Though they come with an added risk of decay. I suggest you do a little more research beyond this video to understand decay before your trade leveraged etfs. These instruments have a recommended one day hold and are not for long term investing. Though these instruments are not to be feared if you have the correct knowledge. Social MEDIA instagram @ wyatt_with_financialfoundation stocktwits @thatassholeupstairs ****Disclaimer**** This is not direct investment or financial advice this is for entertainment and informational purposes only. I only hope to motivate others and clear some of the fog of financial instruments and explain my experience. If I have any information wrong please let me know.
Best ETFs for Daytrading!? 🏃
Best ETFs for Daytrading!? http://www.financial-spread-betting.com/strategies/strategies-tips.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! What are the most popular exchange traded funds for day trading? the big thing about these ETFs is the liquidity and the spreads. There is a huge number of ETFs out there but many of them don't have much liquidity going thru them. Top ETFs for Daytrading SPY - tracks the performance of the S&P 500 VTI - large, mid-size and small caps all in one decent ETF TLT - 20 year bonds VXX - Volatility Index; a good way of trading volatility (simple trackerof the VIX futures) USO - Crude Oil ETF (West Texas Intermediate not the Brent) GLD - Gold QQQ - Nasdaq 100 IWM - Russell 2000 XLF - Financials; basket of financial stocks. EEM - Emerging Markets GDX - Gold Miners FXI - China Large Cap Stocks Related Videos ETFs, What is An Exchange Traded Fund? Part 1 🙌 https://www.youtube.com/watch?v=DUv4A-y52jw Main ETFs to Trade Part 2 👍👌 https://www.youtube.com/watch?v=4zecElizm4g What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍 https://www.youtube.com/watch?v=zfPDpq4BaUs The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4 https://www.youtube.com/watch?v=M7dNVJeQ9cE
Views: 1021 UKspreadbetting
The advantages of trading leveraged ETFs | IG
Hector McNeil from WisdomTree Europe looks at Leveraged (Exchange Traded Funds) ETFs, what they are and the benefits of trading them. ETFs, like investment funds, provide exposure to a portfolio of financial instruments, but they’re traded just like shares on a stock exchange. Some of the benefits of trading ETFs include: • Cost-efficiency • Gaining access to hard-to-reach markets • Increased transparency and flexibility Website: https://www.ig.com/uk/etfs-trading?CHID=9&SM=YT Twitter: https://twitter.com/IGcom Facebook: https://www.facebook.com/IGcom Google Play: https://play.google.com/store/apps/details?id=com.iggroup.android.cfd&hl=en_GB LinkedIn: https://www.linkedin.com/company/igcom Google +: https://plus.google.com/u/0/108999047065291192896 IG is a global leader in retail forex, providing fast and flexible access to over 10,000 financial markets – including indices, shares, forex, commodities . Established in 1974 as the world’s first financial spread betting firm, we are now the world’s No.1 provider of CFDs (Contract for Difference) and a global leader in forex. We also offer an execution-only share dealing service. All trading involves risk. Please take care to manage your exposure. The comments in this video do not constitute investment advice and IG accepts no responsibility for any use that may be made of them.
Views: 1464 IG UK
Discussing Direxion Leveraged ETFs on TFNN
Tom and Tommy take a call live on the air this morning discussing the leveraged ETF's by Direxion and why they are daily investment vehicles for trading.
Views: 387 tfnncorp
4 Mistakes to Avoid When Trading Leveraged ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Leveraged ETFs are generally easy to trade, and they provide investors with the opportunity to multiply their gains on the long and short side of a wide variety of market sectors. However, these funds can also be extremely complex and volatile, resulting in four common investing mistakes. Ignoring how Rebalancing Affects ETFs Most leveraged funds are rebalanced on a daily basis, which may sound like a lot of bookkeeping, but the process can have a major impact on performance if prices are choppy or are moving against an ETF. For example, an ETF that is leveraged 3x and loses 2% on its index in one day would have an effective loss of 6%. Rebalancing compounds the loss because the fund’s holdings must be adjusted lower to reflect 3x leverage on the closing price of the shares for that day. In this example, if 100 ETF shares were purchased at $10, the leveraged exposure would be $3,000 (3x the cost of the shares). After a 6% loss, the shares of the ETF would be priced at $9.40. The shares would then be rebalanced to reflect 3x exposure for $9.40, which would reduce the total exposure of the shares to $2,820. Starting the next day, or several days, with lower exposure as a result of downward rebalancing (also referred to as negative compounding) requires a larger percentage to move higher to break even. The impact on performance due to downward rebalancing is the primary reason why leveraged ETFs tend to work better as short-term trading vehicles, rather than as buy-and-hold investments. Buying on Margin Buying leveraged ETFs in margin accounts adds leverage to fund shares that are already structured to provide volatility. For example, if an investor buys $10,000 of a 2x leveraged ETF at a 50% margin, $5,000 would be required to cover the position. Being on margin at 50% effectively doubles the existing leverage on the investor’s $5,000, meaning that price changes on the ETF’s index would be multiplied by 4x. In this example, a 2% loss on the index would result in an 8% loss (4 x 2%) of the shareholder’s equity. If the losses were to continue, the shareholder’s initial equity in the position would likely be erased after an approximate loss of 25% against the fund’s index. To make matters worse, any losses exceeding 25% could put the position at a negative value, which would have to be covered using other assets in the account or be paid out of pocket. Allowing Leverage To Overweight Sector Exposure Asset allocation within a portfolio is typically measured by the dollar value of each sector in the account. However, when sectors include leveraged ETFs, the exposure can be far greater than the value of the positions within the category. For example, say an investor decides to allocate $20,000 to each of five sectors within a $100,000 portfolio. With the money allocated to commodities, the investor buys a 3x leveraged gold ETF and a 3x leveraged oil ETF. Due to the leverage in the ETFs, this sector of the portfolio would be significa
Views: 85 ETFs
Leveraged ETFs  Are They Right For You  (SSO, DDM)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do The appeal of exchange-traded funds (ETFs) is simple: They mix the diversification benefits of mutual funds with the ability to trade on an intraday basis. There are now thousands of ETFs to choose from and more are being added on a regular basis. Tutorial: ETF Investing The purpose of a leveraged ETF is to increase the exposure to and impact from the underlying index or investments in the ETF. For example, the leveraged ETF may attempt to double the return of an index on a daily basis. (To learn more about indexes, see The ABCs Of Stock Indexes and Index Investing.) Leveraged ETFs provide another tool for investors to access leverage in the financial markets. And because purchasing an ETF is as simple as issuing a buy order through your trading account, it is a much simpler process for most than using options, futures and trading on margin. In this article, we'll show you some key considerations to watch out for when purchasing leveraged ETFs. In June 2006, ProShares introduced the first wave of leveraged ETFs, referred to by the company as Ultra ProShares. The ultra ETFs were designed to double the daily performance of the underlying indexes they tracks. For example, the ProShares Ultra Dow 30 ETF (NYSEARCA:DDM) is structured to gain 2% when the Dow Jones Industrial Average gains 1%. More companies such as Direxion followed suit and according to data from Morningstar there are now more than 170 leveraged ETFs with over $30 billion in assets under management at the end of September, 2016. These funds use a number of instruments to hold positions across asset classes including equity, debt, commodities and derivatives. These investments can also be highly concentrated on sectors, for example ProShares UltraPro Nasdaq Biotechnology (UBIO,) or focused on certain geographies like Direxion Daily FTSE China Bull 3X ETF (NYSEARCA:YINN). Do They Deliver? The idea behind such funds is to take advantage of quick day-to-day movements in different financial markets. ProShares Ultra S&P 500 (NYSEARCA:SSO) was launched in 2006 with the aim of doubling the returns of the underlying S&P 500. The prospectus of the fund clearly lays out that the intention is to double the daily return and not over the long term. In fact it goes on to say that for periods longer than a single day, the fund could lose money if the underlying index remains flat or even sometimes when it rises. For example, one a day in October 2016 when the S&P returned 0.48%, the fund gave back 0.82%. A similar trend exists for the performance over 1 week, but anything longer a disparity emerges. On a daily basis, the return of the ultra ETFs has been fairly accurate, but over the long term there are some issues. In theory, a leveraged ETF that returns twice that of the S&P 500 would have generated annual returns of over 13% over the last ten years. The performance of ProShares Ultra S&P 500 fund has been a far cry from its target. Let alone double, the fund's 10 y
Views: 24 ETFs
Triple Leveraged S&P 500 with Market Timing
Triple leveraged ETFs like UPRO have soared in the last nine years, but you need impeccable timing to avoid catastrophic loss during recession. This video explains how the method works and how you can get an app to make it simple and easy to time the stock market and get rich ASAP.
Views: 76 Alphabry
Advantages Disadvantages of an ETF for Long Term Investing
The exchange traded fund, better known as the ETF, provides many advantages for long term investing. In this video we will cover the different advantages of an ETF for long term investing. (and disadvantages too) If you were to compare the ETF against a mutual fund, the ETF comes out on top for long term investing. One of the biggest advantages the ETF has over a mutual fund is a much reduced management fee ratio. An ETF vs a stock is much more diversified making a long term investment portfolio easier to manage and maintain. Please subscribe to the channel as we will be producing content every week.
Views: 429 MechMoney
Understanding Leveraged and Inverse ETF's
Both leveraged and inverse ETFs come with some red flags, and the “mutants” are a whole other beast. Watch to learn the risk factors of leveraged and inverse ETFs, how an inverse ETF can potentially allow you to make money in your retirement accounts when the markets drop and ehat “mutant” ETFs are and the potential big losses and gains they offer Want to learn more useful trading and investing tips? Check out these playlists: - What is Online Trading Academy?: http://ota.buzz/2u1ed82 - Best of: Stock Trading Tutorials: http://ota.buzz/2IE0qYs SUBSCRIBE to learn everything you need to know about trading: https://ota.buzz/2JRtxbd SIGN UP for a FREE Half-day class! http://ota.buzz/youtube LET'S CONNECT! — https://www.facebook.com/OnlineTradingAcademy/ — https://twitter.com/TradingAcademy — https://www.linkedin.com/company/online-trading-academy/