Inverse ETFs

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Federal Reserve Chairwoman Janet Yellen will give her much-anticipated Jackson Hole speech on Friday 10 a.m. Eastern, and depending on how dovish she seems, exchange traded funds on some of this year’s most popular plays may either continue to push higher or find an abrupt ceiling. Yellen has maintained a dovish stance throughout the year, […]

Democratic presidential nominee, Hillary Clinton, put the spotlight on Mylan (NasdaqGS: MYL) EpiPen prices, triggering a selloff in biotech exchange traded funds and reminding investors of political risks in an election season. Biotech stocks were still reeling from Clinton’s Wednesday remarks, with the iShares Nasdaq Biotechnology ETF (NasdaqGM: IBB) down 3.6% and SPDR S&P Biotech […]

Ahead of the Federal Reserve announcement at its annual Jackson Hole meeting, gold prices dipped to a four-week low, with gold miners and sector-related exchange traded funds breaking below a key level. The VanEck Vectors Gold Miners ETF (NYSEArca: GDX) dropped 4.5% Wednesday, plummeting below its support at the short-term, 50-day simple moving average. On […]

Natural gas prices and commodity-related exchange traded funds are perking up as forecasts for hotter weather ahead raise expectations for higher electricity consumption. The United States Natural Gas Fund (NYSEArca: UNG) rose 3.5% on Monday as Nymex natural gas futures were up 3.8% to $2.68 per million British thermal units. Despite recent gains, UNG has […]

Direxion, the second-largest issuer of inverse and leveraged exchange traded funds, launched a new inverse ETF on Wednesday. The Direxion Daily European Financials Bear 1X Shares (EUFS) seeks daily investment results, before fees and expenses, of 100% of the inverse of the performance of the MSCI Europe Financials Index. EUFS allows tactical managers to hedge against […]

Energy sector exchange traded funds surged alongside crude oil prices as the Organization of Petroleum Exporting Countries set plans for informal talks in September, fueling speculation that the oil cartel could execute an output freeze in light of the recent plunge back into a bear market on a glut in gasoline fuel. Leading the charge […]

Investors have flocked to U.S. Treasuries and bond-related exchange traded funds in a world of negative-yielding sovereign debt. However, with U.S. Treasury yields hovering around three-decade lows, government debt looks pricey and fixed-income investors are now exposed to greater risks. The yield on 10-year Treasury bonds closed below 1.4% for the first time ever earlier […]

As the equities market swings, traders have incorporated leveraged and inverse exchange traded funds to jump on short-term opportunities and hedge around events, like the Brexit vote. “If ever there was a market environment for uncertainty hedging, it is now,” Andy O’Rourke, Managing Director and Chief Marketing Officer at Direxion, told ETF Trends on a […]

With the equities market exhibiting greater bouts of volatility, exchange traded fund investors can utilize inverse or bearish strategies to help protect against the turns and limit the negative effects of any further drawdowns. On a recent webcast, Managing Market Pullbacks with Inverse ETFs, Sylvia Jablonski, Managing Director and Head of the Capital Markets & […]

After a seven year bull run and an increased uncertainty, people may expect the equities market will more likely pullback and give up some of its gains. Consequently, traders have turned to bearish or inverse exchange traded fund strategies to hedge against turns in a more volatile market. On an upcoming webcast this Wednesday, Sector Strategies […]

The Brexit dust has not even settled and exchange traded fund (ETF) options traders are already hedging against a potential slowdown in the Chinese economy as the next major unresolved risk. The ratio of bearish to bullish options on the largest ETF tracking Chinese shares listed in Hong Kong jumped to the highest level since […]

With mounting uncertainty over speculative-grade debt markets, Direxion Investments has expanded its line of inverse and leveraged exchange traded funds to include a high-yield, junk bond option. The recently launched Direxion Daily High Yield Bear 2X Shares (NYSEArca: HYDD) tries to reflect the daily performance of -2x or -200% performance of the Barclays U.S. High […]

As the equities markets continue to slide on ongoing concerns, exchange traded fund investors may look to strategies that track the CBOE Volatility Index and bearish play on stocks. U.S. stocks broke even after falling off for most of the session Thursday as global stocks weakened in response to Japan’s central banks decision to push […]

Fueling market uncertainty, the United Kingdom will vote for the so-called Brexit referendum on whether or not it will remain in the European Union, potentially precipitating wide-reaching volatility on global markets and exchange traded funds. Debate on the Brexit vote has heated up as we draw closer to the June 23 referendum date. While many […]

Direxion Investments, known for its leveraged exchange traded funds, has come out with a simple short or bearish play on the S&P 500. The Direxion Daily S&P 500 Bear 1x Shares ETF (NYSEArca: SPDN) will try to reflect the daily performance of 100% of the inverse performance of the S&P 500 index. “With the S&P […]

After a tumultuous start this year, U.S. dollar exchange traded funds just registered one of their best monthly gains since 2015, and the greenback may have more room to run. The U.S. Dollar Index (DXY), which tracks USD moves against a basket of major currencies, dipped 5.5% to 93.08 on April 25, but the benchmark […]

The smaller companies and small-cap exchange traded funds (ETFs) are beginning to pull ahead. Over the past week, the Russell 2000 Index rose 3.4% while the S&P MidCap 400 Index gained 3.2% and S&P 500 added 2.1%. The small-cap segment has been gaining momentum in recent months, jumping on the risk-on sentiment after the Fed […]

Middle-capitalization stocks are outperforming this year, and investors can also target the mid-cap segment through related exchange traded funds. The middle capitalization category has also outperformed, with the S&P 400, a benchmark for mid-cap companies across the U.S., up 5.9% this year, compared to the 2.5% increase in the S&P 500 and 0.5% gain in […]

Semiconductor exchange traded funds bounced Friday after Applied Materials (NasdaqGS: AMAT) revealed a strong first quarter result that beat estimates on rising smartphone demand. On Friday, the VanEck Vectors Semiconductor ETF (NYSEArca: SMH) gained 3.1%, iShares PHLX Semiconductor ETF (NasdaqGM: SOXX), rose 3.1% and SPDR S&P Semiconductor ETF (NYSEArca: XSD) was up 2.6%. Both SMH […]

Despite a bounce in the mining sector, exchange traded fund investors turned bearish on gold producers after the Federal Reserve’s hawkish stance, piling into a leveraged inverse option Thursday. The Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST), which takes the -3x or -300% daily performance of the NYSE Arca Gold Miners Index, decreased […]

Gold exchange traded funds dulled Wednesday after minutes from the Federal Reserve’s latest meeting showed that the central bank could hike interest rates in June if conditions are right. The Fed minutes revealed that the policy makers are less concerned about risks posed by the global economic and financial conditions and pointed to strengthening U.S. […]

As the markets wade through heightened volatility, many have capitalized on the wild swings with leveraged and inverse exchange traded funds (ETFs) to juice returns. However, while the strategies may generate lucrative returns, investors should fully understand how these products work and the risks involved. Leveraged and inverse ETFs utilize derivatives to achieve their exponential […]

Many market observers follow the old adage “sell in May and go away,” but traders who are sticking around can hedge against the summer doldrums with leveraged and inverse exchange traded funds (ETFs). “Depending on which side of the fence you’re on, if you’re a trader you have choices,” according to Direxion Investments. “Sell in […]

In anticipation of rising inflationary pressures ahead, fixed-income investors have turned to a number of Treasury inflation protected securities and bond-related exchange traded funds. U.S. core inflation, which excludes more volatile oil and food prices, increased 0.1% in March, according to Reuters. Core CPI also ran 2.2% in March year-over-year after gaining 2.3% in February. […]

As markets move toward the late-cycle phase of the normal business cycle, investors should look to areas like the materials sector and related exchange traded funds (ETFs). With the economy recovery maturing, the materials sector, which is closely tied to the prices of raw materials, have traditionally done well as inflation rises and late-cycle economic […]

Real estate investment trusts (REITs) and sector-related exchange traded funds (ETFs) are a good source of attractive payouts in a low-yield environment. REITs are securities that trade like a stock and invest in real estate directly through property ownership or mortgages. Consequently, revenue are mainly generated through rents or interest on mortgage loans. To qualify […]

As the markets turn and investors grow more conservative, defensive assets like utilities sector exchange traded funds (ETFs) are back in the limelight. While the equities market has fallen off over the past few days, with the S&P 500 on track for a three-week low, the utilities sector is strengthening as a defensive play. The […]

Crude oil prices are finally bouncing back, and investors can also track the ups and downs of the energy market through commodity-related exchange traded funds (ETFs). West Texas Intermediate crude oil futures were down 2.4% Tuesday to $43.7 per barrel while Brent crude oil futures were 1.7% lower to $45.1 per barrel. Oil prices fell […]

Exchange traded fund investors who are interested in tapping into the big growth names from the technology space have a number of broad and focused sector-specific ETF options to choose from. While owning U.S. tech has been a great way to access big returns, the growth sector has lagged this year. “We are going to […]

Oil sector exchange traded funds are facing some hurdles as major energy producers ready their first quarter results. With overwhelmingly weak expectations after crude prices plunged to near 13-year lows in February, the sector ETFs could surprise if oil producers reveal conditions weren’t as bad as previously expected. Energy traders will be watching for the […]