“Buy The Fear, Sell The Greed” – Best Seller! Inevitably, you’ll be reading about leveraged ETF lawsuits before long, as well as proposed regulation and other measures to “protect us from ourselves”. Ticker. When combined with an informed pairs trading strategy, leveraged ETFs … EEV     UltraShort MSCI Emerging Markets TYH     Technology Bull 3X Shares TBT     UltraShort 20+ Year Treasury, CMD     UltraShort DJ-UBS Commodity However, … A Leveraged ETF. URE     Ultra Real Estate TWM     UltraShort Russell2000 For example, if a non-leveraged currency ETF … UXI     Ultra Industrials TYP     Technology Bear 3X Shares DPK     Developed Markets Bear 3X Shares TZA     Small Cap Bear 3x Shares TNA     Small Cap Bull 3x Shares The propensity of leveraged ETFs to revert back to their mean within a week makes them all the more attractive to traders using a high-probability strategy on a daily basis. Theoretically, if we can maintain an equal $ value in both legs of the portfolio at every instant, we can scalp the time decay … Take for example the ProShares Ultra S&P 500 … ETF List Extreme – 894 Funds Ranked by YTD Return, Why You Have to Subscribe to Darwin's Finance, NewsFlashr Business Blog Updates for August 26 | Afraid to Trade.com Blog, NewsFlashr Business Blog Updates for August 26 | Penny Stock Trading System Blog, TheTradingReport » Blog Archive » NewsFlashr Business Blog Updates for August 26. ... the daily performance of the S&P 500. UKK     Ultra Russell2000 Growth, UYM     Ultra Basic Materials 2009 Stock Market Returns YTD from Around the World – Shocking! Inverse Pairs Trading improves single sided bullish ETF trading. I think by now, there is ample information out there warning retail investors about the prospective risks of utilizing these daily rebalancing ETFs, especially when held over the long term – and the companies themselves publicize the risks prominently on their websites and in the prospectus, but not it’s never enough to satiate a litigious investor looking at a substantial loss. Leveraged 3X ETFs are funds that track a wide variety of asset classes, such as stocks, … As of today, ProShares as five 3x ETFs on the major indexes. See: SPXU     UltraPro Short S&P500, SJF     UltraShort Russell1000 Value Day trading using leveraged exchange traded funds (ETFs) is a high-risk undertaking but can return profit due to the volatile nature of the trade structure. ZSL    UltraShort Silver, EUO     UltraShort Euro This strategy would not have worked that well if you had shorted a double leveraged S&P 500 ETF pair at the beginning of the year. =-. One-year volatility for the pair is currently north of 60. SDD     UltraShort SmallCap600 FXP     UltraShort FTSE/Xinhua China 25 LTL     Ultra Telecommunications While many of the most popular exchange-traded funds (ETFs) seek to replicate an index's performance, other types of ETFs are built differently. It does this by selling the bullish ETF and buying the Inverse ETF close to the reversal date. 2009 Stock Market Returns – Emerging Markets, http://www.proshares.com/funds/#sort=Name&direction=asc&tab=overview&fundGroup=ultra1x,ultra3x, Tax Tips, Deductions and New Govt Programs, Muni Bond ETFs: Tax-Free High Yield Returns. SFK     UltraShort Russell1000 Growth REW     UltraShort Technology Disclosure:  I am currently engaged in various proprietary trading strategies employing leveraged ETFs. Thanks for making this list! Either way, I’m out of luck. TYD     10-Year Treasury Bull 3x Shares BGU Large Cap Bull 3x Shares MWJ Mid Cap Bull 3x Shares TNA Small Cap Bull 3x Shares ERX Energy Bull 3x Shares FAS Financial Bull 3x Shares DRN Real Estate Bull 3x Shares TYH Technology Bull 3X Shares DZK Developed Markets Bull 3X Shares EDC Emerging Markets Bull 3X Shares TYD 10-Year Treasury Bull 3x Shares TMF 30-Year Treasury Bull 3x Shares Leveraged ETF, Geared (leveraged or short) ProShares ETFs seek returns that are a multiple of (e.g., 2x or -2x) the return of a benchmark (target) for a single day, as measured from one NAV calculation to the next.Due to the … Learn more about our products and services here. I keep track of them and haven’t seen any added since initial publication. With the ETF industry gaining in leaps and bounds in recent years, the use of leveraged inverse ETFs (often known as ultra-short funds) has grown rapidly. Is A Completely Free Market, True Capitalism, Bad For The Little Guy? Figure 1&2: Blue: EWA (left) & EWZ (right), Red: EWC (left) & IGE (right) … JPX     UltraShort MSCI Pacific ex-Japan .-= Kevin´s last blog ..Is A Completely Free Market, True Capitalism, Bad For The Little Guy? MWN     Mid Cap Bear 3x Shares UCC     Ultra Consumer Services SIJ     UltraShort Industrials MZZ     UltraShort MidCap400 New Margin Requirements for Leveraged ETFs Whack Retail Investors but Don’t Address Ignorance, Darwin’s Inverse Leveraged Short ETF Strategy – Incredible Results Outlined, The Riskiest ETFs on Earth – 3X Sector ETF Short/Long. UVT     Ultra Russell2000 Value For short-term trading, there are few vehicles available to active traders currently that can offer as much potential for substantial gains as leveraged ETFs can. SDP     UltraShort Utilities, EFU     UltraShort MSCI EAFE BGU      Large Cap Bull 3x Shares TMV     30-Year Treasury Bear 3x Shares, QLD     Ultra QQQ Financial Evolution: Education, Adaptation, Achievement. It does this by selling the bullish ETF and buying the Inverse ETF … Two examples include leveraged ETFs and … It is recommended that you conduct independent research and consult a certified financial adviser before making any investment or financial decisions based on content from this blog. AGQ     Ultra Silver, EFO     Ultra MSCI EAFE However, they also allow you to lose up to 3x the regular loss. GLL     UltraShort Gold EWV     UltraShort MSCI Japan TWQ     UltraShort Russell3000 UYG     Ultra Financials SCC     UltraShort Consumer Services BZQ     UltraShort MSCI Brazil The Direxion Shares ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged, or daily inverse leveraged… DZK     Developed Markets Bull 3X Shares ROM     Ultra Technology I tried to place a short sell order with Schwab on a number of these ETFs and in every case it gave me an error saying “This stock is either ineligible to be shorted or shares must be borrowed externally.” So either everybody is jumping on this bandwagon or Schwab is cashing in by shorting all leveraged ETF shares that their clients own! TMF     30-Year Treasury Bull 3x Shares, BGZ     Large Cap Bear 3x Shares While leveraged exchange-traded funds (ETFs) can be seen as controversial investments, they also may come with high returns. EET     Ultra MSCI Emerging Markets Most leveraged ETFs listed in the United States attempt to provide 2 or 3 times the performance of a non-leveraged ETF. It consists of inverse pairs of ETFs that may each month. TYO     10-Year Treasury Bear 3x Shares If you want to stay on top of new ETFs in general or leveraged ETFs, feel free to subscribe here via email or RSS options in upper right. If anyone is interested you can check it out at my webpage. To my knowledge, the only companies offering leveraged ETFs are Direxion and Proshares, offering the 3X and 2X daily return ETFs, respectably. SKK     UltraShort Russell2000 Growth, SMN     UltraShort Basic Materials Shorting both sides of a leveraged ETF pair has been proposed to harvest this decay in a market-neutral fashion. Shorting Leveraged ETF Pairs Christopher Hessel , Jouahn Nam , Jun Wang , Cunyu Xing , Ge Zhang The Journal of Trading Mar 2018, 13 (2) 69-79; DOI: 10.3905/jot.2018.13.2.069 Cautions regarding … DRV     Real Estate Bear 3x Shares DUG     UltraShort Oil & Gas Commodity ETF Inflows More than Doubled in 2009. UWC     Ultra Russell3000 Have there been any additions to it since you originally created the list on 8/21/09? While they’re a bit of a different animal, there are the only two closest matches to the US Housing Market proxies in the Case-Shiller Up and Down ETFs which are leveraged as well. Remember that selecting leveraged ETF pairs to short should be done mainly based on 3 criteria: the interest rate charged on borrowed shares (the fee rate), the number of shortable shares available … Leveraged ETFs suffer from decay or beta slippage over time. UKF     Ultra Russell1000 Growth EDC     Emerging Markets Bull 3X Shares Meanwhile, FAS, the 3X Leveraged Financial ETF is down close to 50% while FAZ, the 3X Short Financials ETF … UCO     Ultra DJ-UBS Crude Oil I think we might have a short-term rally in the dollar soon… no 2x/3x dollar ETFs huh? SSO     Ultra S&P500 SMK     UltraShort MSCI Mexico Investable Mkt, PST     UltraShort 7-10 Year Treasury Leveraged ETFs returning 2X and now, 3X the daily returns of various sectors, indices and commodities are all the rage now for both investors and regulators. Tagged as: Log in, Quantamentals: The Next Great Forefront of Trading and Investing. UVU     Ultra Russell MidCap Value As such, just bookmark this page, stumble it, or do whatever it is you do to categorize your favs so you can come back to this when you want to catch a quick market move, hedge some personal risk or whatever it is you find leveraged ETFs to be useful for. While there is ample information out there warning about some of the leveraged ETFs risks (read to understand why I’ve dubbed them the Riskiest ETFs on Earth), there are still certainly appropriate uses by retail and sophisticated investors as long as they are familiar with these risks and take appropriate measures to mitigate/hedge those risks (such as overlaying with a stock option strategy). If a change occurs, we recommend selling and adding their replacements. XPP     Ultra FTSE/Xinhua China 25 SKF     UltraShort Financials UWM     Ultra Russell2000 In any market, I’ve both backtested and personally achieved double digit gains with no direct correlation to the underlying index. Inverse Pairs Trading improves single sided bullish ETF trading. Pairs trading is a dynamic trading strategy any ETF trader can add to their playbook. TLL     UltraShort Telecommunications These 3x leveraged ETFs allow you to earn up to 3x the regular return. . SDK     UltraShort Russell MidCap Growth SJH     UltraShort Russell2000 Value A Pair of ETFs to Satisfy an Investor’s Inner Bull and Bear. RXD     UltraShort Health Care UKW     Ultra Russell MidCap Growth I’ve been maintaining my own list with this information and it’s good to cross check to someone else’s. Give them a shot! What a wonderful piece of information Admiring the time and effort you put into your blog and detailed information you offer ! UGE     Ultra Consumer Goods UPW     Ultra Utilities, UCD     Ultra DJ-UBS Commodity Copyright © 2010 DarwinsFinance.com With 110 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $44.69B. Note how the Blue Line (XLF – 1X Financials ETF) is up marginally over the period. Of course, leveraged ETFs aren't the only products more volatile than SPY. Best Currency ETF Plays to Exploit Weak Dollar Trend, 2009 Stock Market Returns – Emerging Markets in Triple Digits, Just to let you know, the UPRO ETF is actually a 3x on the SP-500, not a 2x as you listed above. GEARED PROSHARES HAVE DAILY PERFORMANCE OBJECTIVES Geared (leveraged or short) ProShares ETFs seek returns that are a multiple of (e.g., 2x or -2x) the return of a benchmark (target) for a single … EDZ     Emerging Markets Bear 3x Shares The average expense ratio is 1.05%. The two pairs we will analyze are EWA (Australia) – EWC (Canada) and IGE (NA Natural Resources) – EWZ (Brazil). MWJ     Mid Cap Bull 3x Shares SJL     UltraShort Russell MidCap Value Whether you’re looking to limit your portfolio risk, maximize the reach of your capital, or strive for exponential gains, leveraged ETFs can offer the informed trader a wealth of opportunity. 2X 3X return, DDM     Ultra Dow30 For short-term trading, there are few vehicles available to active traders currently that can offer as much potential for substantial gains as leveraged ETFs can. Is It A Good Investment? These products occupy a small … The opinions are those of the author only. Additionally, you may want to check out these new ETF articles: 787 ETFs Listed – Every Exchange Traded Fund Known to Man. In summary, shorting pairs of 2X and -2X leveraged ETFs may pay off over long periods as rebalancing effects grind on fund values. This blog is intended solely for information purposes. I am currently working on a speculative trading strategy that only trades 3x Leveraged ETFs for smaller account appreciation. ERX     Energy Bull 3x Shares Actually, the Euro and Yen ETFs above are 2x Long, Short. I’ve also listed out a niche US Home Price ETF pair at the bottom of this article as well. The index is designed to provide 4 times leveraged exposure, reset daily, to changes in the spot exchange rate between an underlying pair of currencies consisting of the U.S. dollar and the … SSG     UltraShort Semiconductors SDS     UltraShort S&P500 The increased exposure that leveraged ETFs offer traders is available without having to lay out the same amount of capitol it would take with another equity or security, and with a properly executed pairs trade they can be utilized to provide a broader and safer position in the market. UPRO     UltraPro S&P500, UVG     Ultra Russell1000 Value DIG     Ultra Oil & Gas A leverage ETF is a fund that borrows capital in an effort to generate returns that are a multiple of the returns expected from a non-leveraged ETF. The results are astounding. Rates Are Finally Spiking – What it Means, How Obama Goosed the Jobs Numbers and Why It’s Much Worse Than Media Portrayals, Yahoo’s Work From Home Controversy – Thoughts and Your Opinions. For now, which the financial innovation continues and with an additional tool in the trader’s arsenal, it’s worth knowing what’s out there. They are what the say they are; a 3X leveraged ETF is a vehicle calibrated to 300% or triple the gain or loss of the price movement of a stock or index. Take the time to understand leveraged ETFs… MVV     Ultra MidCap400 SZK     UltraShort Consumer Goods As new leveraged ETFs are added (which I’m sure they’re not done yet), I’ll be sure to update the list. Hi Cliff, ERY     Energy Bear 3x Shares No responsibility will be accepted for adverse events that may result as a consequence of acting on the information presented herein. EZJ     Ultra MSCI Japan, QID     UltraShort QQQ YCS     UltraShort Yen. FAS     Financial Bull 3x Shares RXL     Ultra Health Care SRS     UltraShort Real Estate Thanks for compiling this list. Normal selling of the bullish ETF would keep you out … UGL     Ultra Gold http://www.proshares.com/funds/#sort=Name&direction=asc&tab=overview&fundGroup=ultra1x,ultra3x. Do you know of a good source to keep up-to-date on leveraged ETFs that are about to be and/or have just been created? Check out this review of Case-Shiller Home Price ETFs if interested in hedging your personal real estate or speculating on where the housing market goes from here, but just be mindful that real estate is local and there is no instrument representing your specific locale. FAZ     Financial Bear 3x Shares Gold ETN GOE up 421% in 1 Month – What Gives? Thumbs up. If the Dow rises 1%, then the 3X Leveraged ETF … Different pairs may behave differently. In this strategy, I short a pair of leveraged ETFs (ERX and ERY) with daily rebalancing. What is inverse pairs trading? It has been difficult to find positive information and comments about leveraged ETFs. Thanks for the interesting article and the list has helped me sort through the leveraged ETF universe. SCO     UltraShort DJ-UBS Crude Oil SAA     Ultra SmallCap600 Many thanks in advance for your help here…. ETF issuers are ranked based on their aggregate 3-month fund flows of their ETFs with … DRN     Real Estate Bull 3x Shares I will bookmark your blog and have my children check up here often. EPV     UltraShort MSCI Europe Individual Investors Make Terrible Decisions – So STOP Making Them! Since leveraged ETFs tend to decline in value over time due to daily rebalancing, I’ve shared the results of my dual-pair inverse Short ETF Strategy. USD     Ultra Semiconductors As such, I wanted to provide a comprehensive list of all the leveraged ETFs that exist today with an easily referenced ticker symbol list. 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