That said, rather complex bets that would normally entail using futures, options, margin, and short selling, can be enacted with one trade via a FactorShares ETF such as FOL, and potentially used as a speculative trade or even a portfolio hedge.

Being still somewhat new to the ETF marketplace, having debuted in February of this year, FOL does not trade a ton of volume on a regular basis (average daily volume is only 3,200 shares) but due to the nature of the underlying assets tracked, real underlying liquidity is present and portfolio managers can establish positions of meaningful size if the trades are executed properly.

FactorShares 2X: Oil Bull/S&P 500 Bear

For more information on Street One ETF research and ETF trade execution/liquidity services, contact pweisbruch@streetonefinancial.com.

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