VelocityShares this week listed eight new leveraged and inverse exchange traded notes for precious metals.
The new ETNs offer 200% and 300% leverage and allow investors to go long or short on gold, silver, palladium and platinum.
The funds began trading on Oct. 17. [ETFs Listing at Brisk Pace]
The ETNs are intended to be used as daily trading tools. The funds only reflect their 2x/3x inverse/leveraged investment objectives on a daily basis. As such, these investments are not intended for long-term, buy-and-hold investors.
Credit Suisse is the issuer of the ETNs. ETNs are debt instruments backed by the full faith and credit of the issuer. [ETNs: Everything You Want to Know.]
“Precious metals trading volumes have been on the rise, and institutional traders are looking for alternative ways to implement their positions,” said Nick Cherney, co‐founder and chief investment officer of VelocityShares.
- VelocityShares 3x Long Gold ETN (NYSEArca: UGLD)
- VelocityShares 3x Inverse Gold ETN (NYSEArca: DGLD)
- VelocityShares 3x Long Silver ETN (NYSEArca: USLV)
- VelocityShares 3x Inverse Silver (NYSEArca: DLSV)
- VelocityShares 2x Long Palladium ETN (NYSEArca: LPAL)
- VelocityShares 2x Inverse Palladium ETN (NYSEArca: IPAL)
- VelocityShares 2x Long Platinum ETN (NYSEArca: LPLT)
- VelocityShares 2x Inverse Platinum ETN (NYSEArca: IPLT)
For more information on leveraged funds, visit our leveraged ETFs category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.