Posted byBlain ReinkensmeyerLast updated on Jun 29th, 2019 Published Aug 26th, 2011
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Exchange Traded Funds (ETFs) are a great way to play the market as a whole, a specific industry, or an index. ETFs trade like stocks, meaning their price fluctuates each day as buyers and sellers trade shares. Thus, the value of an ETF is not calculated like a mutual fund.
Long Exchange Traded Funds (ETFs) are a great way for investors to go long on different sectors or indices without having to actually buy physical shares of stock.
With leveraged ETFs, Ultra (2x) and UltraPro (3x), the return is twice and triple the regular performance of the benchmark index the ETF tracks. Note this is twice the DAILY return; leveraged ETFs should not be traded long, only day traded, to avoid pricing differentiation. Read this article from ETFDB,7 Risks of Trading Leveraged ETFs and How to Avoid Themfor important education on leveraged ETFs.
Following up on our popular postInverse / Short ETFs For Bearish Investorshere is a full list of long and leveraged etfs, 2x and 3x long / bullish ETFs.
A Exchange Traded Fund (ETF) is a basket of individual securities held under one product that tracks an index, group of stocks, commodity, etc. but is traded like a stock on a stock exchange. The first big point to note is that an ETF is NOT a mutual fund; ETFs prices change throughout the day just like a stock.
The most popular ETFs are the index funds. Want to invest in the NASDAQ? Then buy shares of ETF QQQ. Want to be short the NASDAQ? Then buy some shares of PSQ, which is the 1x inverse of the Nasdaq 100. There are also ETFs that track the S & P 500, e.g. SPY, and the Dow Jones Industrials has the DIA.
Bottom line: Every major stock market index has an ETF representing both long and short.
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Hi, my name is Blain Reinkensmeyer and Im the guy behind . I started investing when I was 14, day traded professionally for several years, and have placed several thousand stock trades over my career.Read more about me
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