Category

Leveraged ETFs

Why “TBT” Doesn’t Have A Prayer

By | Actively Managed ETFs, Bond ETFs, ETF Philosophy, Leveraged ETFs, Short ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

When Jack Nicholson won his third Best Actor award in 1997’s “As Good As It Gets,” he may have chuckled at the knowledge that he’d never have it so good again. Who wins four Academy Awards for Best Actor in a motion picture? Nobody. (Yes, I checked… and Katherine Hepburn won four Oscars for Best Actress.) The problem with reaching a pinnacle, of course, is that your options are limited. You might be able to hang out on top of…

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Alternative ETFs: Can You Increase Your Risk-Adjusted Performance?

By | Actively Managed ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Leveraged ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Is anyone bothered by the bizarre relationship between a sub-par economy and ever-rising stock prices? In brief, dismal hiring coupled with negligible wage growth encourage the Federal Reserve to continue suppressing interest rates with its emergency bond buying program. Corporations use the ultra-low rates to refinance debt, repurchase stock shares, cut costs and enhance profit margins, while rarely using the easy money to hire. Meanwhile, investors increase their margin exposure to buy riskier assets and/or simply opt for riskier assets…

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Why Infrastructure ETFs Are Overrated

By | Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Industrial ETFs, International ETFs, Leveraged ETFs, Real Estate ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Early in 2007, a prospective client informed me that he would not be placing his $1,000,000 portfolio with my company, Pacific Park Financial. He explained that another Registered Investment Adviser specialized in leveraged emerging market ETFs and that the firm’s performance was amazing. I challenged the individual to better understand daily compounding versus annual compounding, though ultimately, I recognized the infatuation for what it was. Less than two years later, I received a phone call from a familiar voice. My one-time prospect expressed regret for…

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Institutional Investor(s) Bet Big On Leveraged Treasury ETF

By | Bond ETFs, ETF Philosophy, Leveraged ETFs, US Markets and ETFs | No Comments

Six months ago to the day, the Dow Industrials was sitting near multi-year highs. At the same time, one or more institutional investors piled into leveraged intermediate treasuries. The exchange-traded fund? ProShares Ultra 7-10 Year Treasury (UST). The commitment? $40 million on 25x normal trading volume. Back then, it seemed like a long shot to expect significant gains in a leveraged treasury play. With the 10-year yielding 2%, one needed to see the 10-year yield down around 1.5% in order…

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What The New 52-Week Lows In iShares MSCI Spain (EWP) Tell Us

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Leveraged ETFs, Short ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

On Tuesday, 5/1/2012, CNBC trumpeted the Dow’s highest close since December of 2007. On Wednesday, the media giant celebrated the price-weighted index’s ability to shrug off weaker-than-anticipated employment data in the United States. There are reasons to be pleased with the progress of U.S. stocks in 2012. My clients continue to benefit from exposure to risk assets like Vanguard High Dividend Yield (VYM), Vanguard Dividend Growth (VIG) and Vanguard REIT ETF (VNQ). Still, little attention has been paid to the 52-week highs reached by non-stock ETFs….

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3 Reasons For Pursuing High Income Producing ETFs

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Leveraged ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

We can all agree that the first 3 months were wonderful for risk takers. What’s more, we can all feel good that U.S. stocks ran at their fastest percentage clip since 1998. Of course, what happened in the summer of 1998 is pretty intriguing as well. The infamous hedge fund Long-Term Capital Management helped exacerbate the spread of an Asian currency crisis. The S&P 500 and Dow fell a tad shy of the 20% required for a bear market call, though the NASDAQ gave up 1/3…

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Creating A Yield-Oriented Portfolio For 2012

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Leveraged ETFs, US Markets and ETFs | No Comments

Let’s face it. Maybe you weren’t cut out for volatility. And the stock market isn’t about to let you garner remarkable rewards in 2012… at least not without monstrous price swings. Can you turn to U.S. treasuries next year? Even if record-low yields didn’t rise, your return may not even keep up with inflation. It doesn’t look much better for savings accounts either. Granted, a case can be made for the return OF one’s capital rather than the return ON one’s capital. Then…

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3 “Ultrashort” ETFs Thrust Into The Limelight

By | Commodity ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Leveraged ETFs, Natural Resources ETFs, Short ETFs, Special Sectors ETFs | No Comments

I want to believe that I am still a capable basketball player. I am 6′ 2″ with an ample frame. I’ve got a fair amount of skill with my left hand. And I genuinely enjoy the half-court offense. (Translation: I’m “bulky,” left-handed and I don’t particularly like to run.) The reality may be even more dismal. Younger guns leap, sprint and pass… so quickly and so effortlessly… my court presence is an exercise is in obsolescence. What we want to…

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The Day The Commodity ETFs Died

By | Commodity ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Leveraged ETFs, Natural Resources ETFs, Short ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Holy Macaroni! For those who limited themselves to lamenting the 1% Cinco De Mayo losses on the Dow, they missed a stunning beat-down in the commodities universe. It’s not that it was entirely unexpected. Some may have read my commentary one week ago to the day when I offered the following: “That said, traders should begin to consider a near-term possibility of shorting silver via ProShares UltraShort Silver (ZSL). The historical ratio between silver and gold prices has contracted to 33:1 from 90:1 in about…

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Leveraged Retail ETFs: Just In Time For A 2nd Half Slowdown?

By | Consumer ETFs, Current Affairs and ETFs, ETF Strategy, Leveraged ETFs, Retail ETFs, Short ETFs, US Markets and ETFs | No Comments

Corporations continue to post phenomenal earnings. And yet, macro-economic reports continue to register weaker-than-expected numbers. It’s a battle for the soul of the investing public. Do you believe that strength at classic cyclical organizations (e.g., Intel, Alcoa, etc.) will lead to improvement in hiring, consumption and overall GDP? This would likely be bullish for stock assets. Or do you anticipate that a core unwillingness to lend, hire or consume will be the eventual undoing of corporate profits? This would likely be bearish for equity…

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