These products work as advertised, said Joel Dickson, Vanguards senior ETF strategist. Now, whether investors understand how they work is an education issue. Meanwhile, top leveraged ETF providers denounced Fink's comments. "Direxion Investments completely reject his contention that leveraged ETFs pose a systemic risk," the company said in a statement. A three times leveraged ETF like Direxion's gold miners fund has $2 of leverage for every $1 of capital invested in the product.
But it will also lend securities to short sellers when it thinks there is a good chance of a short squeeze that would generate alpha as investors are forced to cover. Clearly, high short interest is an important factor when looking for short squeeze opportunities, but a draft prospectus filed with the Securities and Exchange Commission says that a variety of fundamental and technical factors will also be taken into account. No doubt the exact process will be a closely guarded trade secret. SQZZ ETF: Possible sign of a top, wonders Kass Value investor Doug Kass wondered if this is a sign of a top? reports Dimitra DeFotis for Barrons , neatly summing up the optimistic bent that must be needed to convince people to invest the SQZZ ETF. First, the reason passive ETFs have become so popular in the first place is because they give index-like returns with very low fees.
Done A Stable ETF to Gain Exposure to a Volatile Biotech Sector By ETFtrends.com June 6, 2014 1:28 PM 0 shares Content preferences Done After biotech stocks tumbled in the wake of drug pricing concerns and a disdain for growth stocks, biotechnology exchange traded funds show cheaper valuations and possibly present a buying opportunity for investors. The recent price pressure may present a buying opportunity for investors interested in biotech firms, according to Robert Goldsborough, fund analyst for Morningstar . IBB comes with a 0.48% expense ratio. [ Technical Analysts See Bullish Signs for Biotech ETFs ] The jarring pace of change, single-product liability, regulatory uncertainties, and intellectual property rights make picking stocks in the biotech sector a high-risk/high-reward proposition, Goldsborough added.
A Stable ETF to Gain Exposure to a Volatile Biotech Sector - Yahoo Finance
Emerging market stocks, and Brazil in particular, have been on the decline in recent years as investors have chased performance of domestic equities here in the United States. However, EWZ had been making a strong comeback since finding a bottom in February that has many investors considering repositioning their portfolios back into Latin America and emerging market economies. The Market Vectors Brazil Small Cap ETF (NYSE: BRF ) is also at a critical crossroads of technical support that needs to hold. if the rally in Brazilian equities is going to extend higher. This ETF has $160 million invested in 75 Brazilian small cap stocks and may be considered a complimentary position to a large-cap holding such as EWZ.
An ETF, or exchange traded fund, is a publicly traded fund that contains a basket of assets and trades like a stock on an exchange. A "short squeeze" happens when a stock that is heavily shorted, or a stock investors have bet will go down in price, surges higher. A short squeeze results because fewer shares of a company are available for purchase. Since those betting against a stock must borrow the shares, fewer shares remain for sale and can quickly get bid higher due to a lack of supply. This is basically what happened to shares of Herbalife last year, for instance. Prices soared to more than $70 from about $30 after Carl Icahn took a massive stake in the company following Bill Ackman's presentation December 2012 that said the company would go out of business.
Notable ETF Inflow Detected - AGG - NASDAQ.com
Aggregate Bond ETF (Symbol: AGG) where we have detected an approximate $141.5 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 156,800,000 to 158,100,000). The chart below shows the one year price performance of AGG, versus its 200 day moving average: Looking at the chart above, AGG's low point in its 52 week range is $104.88 per share, with $109.83 as the 52 week high point - that compares with a last trade of their website $109.06. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average . Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.