Getting The Most Of Your Bet On Financials With These ETFs (FAZ, FAS, SKF, SEF, XLF, VFH, IYF, UYG)

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September 8, 2010 11:55am NYSE:FAS NYSE:FAZ

“Leverage can do remarkable things. With enough leverage, a 20% return can be transmuted into 100%. Of course, in the math world whatever is given can also be taken away. Plenty of investors


 (professional and amateur) have blown themselves up with leverage and that boost to returns in good times can turn around and bite ferociously when the play is wrong. Just ask the likes of Lehman Brothers what can happen when someone is highly leveraged and hits a rocky patch in the road. Investors have always had some tools at hand to add leverage to their investment decisions. From buying on margin, to investing in options, to playing the commodity markets, these are all ways of making $1 of investment capital go a little further in exchange for higher risks. Relatively recently, though, financial services firms have come out with new products for investors – highly-leveraged ETFs that look to multiply the returns of underlying markets,” Stephen Simpson Reports From Kratisto Investing. 

To read the full article, please click below:
http://stocks.investopedia.com/stock-analysis/2010/How-To-Double-Or-Triple-Your-Bets-On-Financials-FAS-FAZ-SKF-SEF-XLF-VFH-UYG0907.aspx 

 

Take a look at our individual categories for each ETF for more details and great content.  We have put together some more details on each ETF below along with the link to each ETF’s category. 

Direxion Shares ETF Trust Financial Bull 3x (NYSE:FAS)  Visit Our (FAS) Category: HERE 

The investment seeks to replicate, net of expenses, 300% of the daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is nondiversified. 

Direxion Shares ETF Trust Financial Bear 3x (NYSE:FAZ)  Visit Our (FAZ) Category: HERE 

The investment seeks to replicate, net of expenses, 300% of the inverse daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is nondiversified. 

ProShares UltraShort Financials (NYSE: SKF)  Visit Our (SKF) Category: HERE 

The investment seeks daily investment results, before fees and expenses, which correspond to twice the inverse of the daily performance of the Dow Jones U.S. Financials index. The fund invests in derivatives that advisors believes should have similar daily return characteristics as twice (200%) the inverse of the daily performance of the Index. It invests typically the rest of the assets in money market instruments. The fund is nondiversified. 

Ultra Financials ProShares (NYSE:UYG)  Visit Our (UYG) Category: HERE 

The investment seeks daily investment results, before fees and expenses, which correspond to twice the daily performance of the Dow Jones U.S. Financials index. The fund invests in equity securities and derivatives that advisors believes, in combination, should have similar daily performance characteristics as twice (200%) the daily return of the index. It invests typically the rest of the assets in money market instruments. The fund is nondiversified. 

iShares Dow Jones US Financial Sector (NYSE:IYF)  Visit Our (IYF) Category: HERE 

The investment seeks investment results that tracks Dow Jones U.S. Financials Index. The fund invests at least 90% of assets in securities of the underlying index and in depositary receipts representing securities of the index. The underlying index measures the performance of the financial sector of the U.S. equity market. It includes companies in the following industry groups: banks, non-life insurance, life insurance, real estate and general finance. The fund is nondiversified. 

Financial Select Sector SPDR (NYSE:XLF)  Visit Our (XLF) Category: HERE 

The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Financial Select Sector Index. The fund will normally invest at least 95% of its total assets in common stocks that comprise the relevant Select Sector Index. This fund has adopted a policy that requires it to provide shareholders with at least 60 days notice prior to any significant material change in its policy or its underlying index. It is nondiversified. 

Vanguard Financials ETF (NYSE:VFH)  Visit Our (VFH) Category: HERE 

The investment seeks to track the performance of a benchmark index that measures the investment return of financial stocks. The fund employs a passive management investment approach designed to track the performance of the MSCI U.S. Investable Market Financials 25/50 index. This index consists of stocks of U.S. companies within the financials sector. This sector is made up of companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, financial investment, and real estate. It is non diversified. 

Short Financials ProShares (NYSE:SEF)  Visit Our (SEF) Category: HERE 

The investment seeks daily investment results, before fees and expenses, which correspond to the inverse of the daily performance of the Dow Jones U.S. Financials index. The fund invests in derivatives that advisors believe should have similar daily performance characteristics as the inverse of the daily return of the Index. It invests typically the rest of the assets in money market instruments. The fund is nondiversified.


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