Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
ProShares Ultra S&P500 ETF (SSO) may be a profitable swing trading instrument, but the 2X leverage factor is a source of drift. This article explains what "drift" means, reports it for 22 leveraged ...
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
Leveraged exchange-traded funds, which employ derivatives to generate a multiple of a reference asset’s daily return, have been popular. We estimate they gathered around $13 billion in net inflows ...
These products have grown in leaps and bounds over the past couple of years. ETFs and mutual funds providing 2x and 3x leverage by issuers, such as ProShares and Direxion, have been around for decades ...
The ProShares Ultra S&P 500 ETF (NYSEMKT:SSO) and the Direxion Daily Semiconductor Bull 3X Shares ETF (NYSEMKT:SOXL) both offer leveraged exposure, but SSO targets the broad S&P 500 at 2x leverage, ...
In reality, leveraged products can be very dangerous if used improperly. Even when used as intended, these ETFs can expose investors to huge downside risk very quickly. As always in investing, the ...
NEW YORK, Dec 3 (Reuters) - Hedge funds are using near-record levels of leverage to trade equities and betting on debt-backed strategies in efforts to juice returns, making the most of markets buoyed ...
SOXL’s 3x leverage and semiconductor sector focus create far higher risk and volatility than SSO’s broad 2x S&P 500 exposure. SOXL offers a lower expense ratio, but it's suffered a much deeper 5-year ...