FactorShares says the impetus behind the funds is to simplify the execution of a common strategy: going long in one area and short in another. The provider points out that it takes a lot of time to rebalance those positions, not to mention that getting that exposure requires two transactions to take two positions.
What’s more, in keeping with the price war trend, they’ll be sold commission-free through Interactive Brokers.
The provider cautions that these products, like other leveraged and inverse ETFs, are for sophisticated investors who understand them.
The first five products that begin trading today are:
- FactorShares 2x: S&P 500 Bull/TBond Bear (NYSEArca: FSE)
- FactorShares 2x: TBond Bull/S&P 500 Bear (NYSEArca: FSA)
- FactorShares 2x: S&P 500 Bull/USD Bear (NYSEArca: FSU)
- FactorShares 2x: Oil Bull/S&P 500 Bear (NYSEArca: FOL)
- FactorShares 2x: Gold Bull/S&P 500 Bear (NYSEArca: FSG)