3X Exchange-Traded Funds

Thursday, November 06, 2008 | 08:30 AM

When we made our buy 'em call on October 10th, we wanted to avoid single stock risk. And, we wanted to have prudent exposure, while still maintaining some cash levels. Our solution was to deploy enough cash into 2 to 1 leveraged funds on the S&P (SSO) and the Nasdaq 100 (QLD) so that our managed accounts were 50% cash, and 100% effective market exposure. That worked out well.

Now, along comes an even more aggressive ETF: Triple upside and downside exposure. I have no opinion of these, as I have not really worked out the usages of this. It does seem a but excessive, and my friend Paul absolutely hates them.

Here is the full run of triple leverage ETFs. I wonder if Rydex will come out with a competitive product or not.

Fund Name . . . Symbol . . .          Benchmark . . .          Leverage

Direxion Bull Funds

•  Large Cap Bull 3x
(BGU)  Russell 1000 Index      300%

• Small Cap Bull 3x
(TNA)  Russell 2000 Index       300%

• Russell 1000® Energy
(ERX) Energy Bull 3x Shares    Index  300%

• Financial Bull 3x Russell 1000 Financial Services Index
(FAS)     300%

Direxion Bear Funds

• Large Cap Bear 3x
(BGZ)  Russell 1000 Index         -300%

• Small Cap Bear 3x
(TZA)   Russell 2000 Index         -300%

• Russell 1000 Energy
(ERY) Energy Bear 3x Shares     Index                      -300%

• Financial Bear 3x Russell 1000 Financial Services Index
(FAZ)    -300%

>

Permamlink and comments are here


Previously:
Paul Disses the Triple Leverage ETF (Video)
http://www.ritholtz.com/blog/2008/11/triple-leverage-etf/

10 Bullish Charts, Signals, Indicators (October 10, 2008)
http://www.ritholtz.com/blog/2008/10/10-bullish-charts-signals-indicators/

Source:
Innovative Funds Benchmarked to Help Advisors and Investors Seeking to Outperform
Nov 03, 2008 11:41 ET
http://www.marketwire.com/press-release/Direxion-Funds-916219.html

Thursday, November 06, 2008 | 08:30 AM | Permalink | Comments (0) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef010535dda695970c

Listed below are links to weblogs that reference 3X Exchange-Traded Funds:

Comments

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner