Inverse ETFs

The U.S. dollar plunged Wednesday, with a greenback-related exchange traded fund dipping below its long-term trend line, as the worsening economic outlook and ongoing volatility added to skepticism that the Federal Reserve would pull the trigger on another rate hike anytime soon. The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) fell 2.0% Wednesday, […]

China’s manufacturing sector slowed for the sixth consecutive month and contracted at its fastest pace in over three years, dragging on Chinese stock exchange traded funds and reversing a rebound in oil markets. China A-shares ETFs that track mainland Chinese stocks traded in Shanghai and Shenzhen retreated Monday, with the Deutsche X-trackers Harvest CSI 300 […]

While the broad U.S. equities market strengthened Thursday, the biotechnology sector looked under the weather, with sector-related exchange traded funds slipping to 52-week lows. On Thursday, the iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB) fell 3.6% and SPDR S&P Biotech ETF (NYSEArca: XBI) dropped 3.5%. Year-to-date, IBB declined 19.2% and XBI decreased 26.4%. Both biotech ETFs […]

The sell-off in the oil markets has weighed on capital spending from the energy sector as producers hold off on new projects, pressuring U.S. industrial companies and sector-related exchange traded funds. Over the past year, the Industrial Select Sector SPDR (NYSEArca: XLI) declined 10.8%, Vanguard Industrials ETF (NYSEArca: VIS) dropped 9.2%, iShares U.S. Industrials ETF […]

Exchange traded products that track the CBOE Volatility Index, or VIX, have experienced large outflows, suggesting that investors are anticipating smaller swings and calmer markets ahead. Traders pulled $850 million from two of the most popular ETPs, which include both exchange traded funds and exchange traded notes, in January, even as the VIX is set […]

Investor confidence is waning in Chinese markets as a slowing economy and weakening yuan currency drag China A-shares related exchange traded funds to their lowest in 13 months. China A-shares ETFs that track mainland Chinese stocks traded in Shanghai and Shenzhen declined Tuesday, with the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (NYSEArca: ASHR) […]

As the exchange traded fund industry grows, the number of critics are growing as well. While we do hear about a number of concerns that are unique to ETFs, investors should separate the facts from fiction. For instance, some are concerned that ETFs cause volatility in the stock market. However, people may be confusing the […]

Crude oil-related exchange traded funds continued to slip Tuesday, with West Texas Intermediate oil trading below $30 per barrel for the first time in over a decade, and observers warn there may be more pain ahead. On Tuesday, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, fell 3.0% […]

As investors try to shift around positions capitalize on short-term earnings moves, exchange traded funds that track the healthcare, telecom and tech sectors may outperform while the energy sector is largely expected to bring up the rear. Goldman Sachs analysts argue that the energy sector will depress U.S. fourth-quarter earnings and pressure growth for the […]

We are heading into the earnings season, and investors are growing concerned over the outlook for biotechnology stocks and sector-related exchange traded funds as bellwether Celgene Corp. (NasdaqGS: CELG) expects weaker-than-expected growth last year. Biotech stocks were among the worst performers Monday, with the ALPS Medical Breakthroughs ETF (NYSEArca: SBIO), which focuses on small- and […]

Upbeat U.S. economic data and a less anxious market are tarnishing the safe-haven gold trade, with precious metals miners and sector-related exchange traded funds among the worst performers Friday. The SPDR Gold Shares (NYSEArca: GLD) dipped 1.0% Friday while the Market Vectors Gold Miners ETF (NYSEArca: GDX) fell 3.7% and Market Vectors Junior Gold Miners […]

The back-to-back selling in U.S. equities is fueling a rally in inverse exchange traded funds that capitalize off the stock market’s pain. The Dow Jones Industrial Average plunged another 350 points Thursday while the S&P 500 was down 2.1% and the Nasdaq was off 2.7%. On Thursday, the SPDR S&P 500 ETF (NYSEArca: SPY) fell […]

The CBOE Volatility Index and VIX-related exchange traded products spiked Thursday after a quick plunge in Chinese markets triggered a sell-off in the U.S. and inflamed investor anxiety. On Thursday, the iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) rose 11.4%, ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) gained 10.9%. Additionally, for the […]

Crude oil prices plunged to 11-year lows and energy commodity-related exchange traded funds dipped toward an all-time low as rising supply, a weak China, OPEC discord and strong U.S. dollar fuel the perfect storm. On Wednesday, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, declined 5.1% and the […]

Chinese stocks and country-specific exchange traded funds woke up to a rough start in the new year as lackluster economic data and a depreciating currency set off a sell-off in mainland stocks that triggered trading halts for the rest of the day. On Monday, the iShares China Large-Cap ETF (NYSEArca: FXI), the largest China-related ETF […]

With the Federal Reserve intent on gradually normalizing interest rates and default risks rising, fixed-income investors may utilize inverse or short bond exchange traded funds to hedge their corporate debt exposure. Banks and investors are turning to alternative tools to hedge losses as credit markets grow more vulnerable to shocks from commodity prices, notably depressed […]

Natural gas exchange traded funds took a sharp turn Wednesday after rallying on a shift in the weather outlook. Traders who are wary of further weakness in the gas market may want to keep inverse or bearish fund options close at hand. On Wednesday, the United States Natural Gas Fund (NYSEArca: UNG) fell 4.8%% and […]

Exchange traded funds have seen trading activity increase over the years as more investors see the benefits of the investment vehicle. For instance, since ETFs trade on an exchange like a stock, many have utilized the funds to execute quick or tactical positions to capitalize on market turns. While ETFs accumulate more assets and investor […]

Exchange traded funds that utilize derivative financial tools to achieve their intended strategies have drawn greater scrutiny from regulators. However, the investment vehicles have been working as intended for more sophisticated investors whom understand the tools. Analysis of their market activity illustrates that leveraged exchange-traded funds have been used properly since they were registered in […]

Natural gas-related exchange traded funds hit all-time lows and were among the worst performing assets Monday as natgas futures plunged to a 13-year low on diminished heating demand in a mild winter. On Monday, the United States Natural Gas Fund (NYSEArca: UNG) fell 4.8% and the iPath Bloomberg Natural Gas Subindex Total Return ETN (NYSEArca: […]

Corporate insiders are dumping positions at near-record levels, potentially hinting at troubles ahead. Exchange traded fund inverse can also hedge against potential risks in the market with small positions in inverse strategies. According to investment research firm TrimTabs, insider selling hit $7.6 billion for the month of November, the fourth highest monthly level on record, […]

The unusually temperate winter across the U.S. has sapped natural gas demand, dragging gas-related exchange traded funds to all-time lows and January-delivered futures contracts to a 17-year low. The United States Natural Gas Fund (NYSEArca: UNG) was unchanged in mid-Tuesday after paring early morning losses, which drove the natural gas ETF to new lows. UNG […]

Exchange traded fund traders who have utilized leveraged and inverse products to hedge positions or capitalize on swift market turns will be watching the Securities and Exchange Commission this week as the regulatory body is set to make an announcement on the use of derivatives in fund products. On Friday, the SEC is set to […]

After the Organization of Petroleum Exporting Countries decided to keep the crude oil pumps flowing, energy-related exchange traded funds plunged, with oil prices near the financial depression lows. West Texas Intermediate crude oil futures fell 5.2% to $37.9 per barrel on Monday while Brent crude oil futures were 4.7% lower to $41.0 per barrel. The […]

Brazil country-specific exchange traded fund investors may not see a light at the end of this tunnel any time soon as the economy is on track for its worst recession in almost a century. The iShares MSCI Brazil Capped ETF (NYSEArca: EWZ), the largest ETF that follows Brazilian equities, has declined 9.4% over the past […]

The U.S. dollar and currency-related exchange traded funds have bounced back to their highest levels since spring as traders bet on diverging central bank policies ahead. Over the past three months, the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of currencies, […]

In the current economic environment, gold bullion and related exchange traded funds are stuck in a rut, with the precious metal experiencing six-week losing streak and trading around six-year lows. Over the past six weeks since the October 16 close, the SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss […]

As regulators scrutinize Chinese equities market and brokerages, investors sold off China A-shares, pushing country-related exchange traded funds below their trend lines. On Friday, the iShares China Large-Cap ETF (NYSEArca: FXI), the largest China-related ETF that tracks Chinese companies listed on the Hong Kong stock exchange, dipped 2.8% and  the SPDR S&P China ETF (NYSEArca: […]

Weakening global growth and the strong U.S. dollar have weighed on demand for raw materials and pressured commodities-related exchange traded funds, with a major commodity index now trading near a 16-year low. The broad commodities market has been trending lower. Year-to-date, the GreenHaven Continuous Commodity Index Fund (NYSEArca: GCC) dipped 17.8%, PowerShares DB Commodity Index […]

Th unseasonably warm winter temperatures and diminished demand for heating fuel have pushed natural gas inventories to record highs and pushed natgas-related exchange traded funds to all-time lows. On Friday, the United States Natural Gas Fund (NYSEArca: UNG) fell 4.1% and United States 12 Month Natural Gas Fund (NYSEArca: UNL) dropped 2.9%. The three-times leveraged-long […]