#volatility-decay
#volatility-decay
[ follow ]
#leveraged-etfs
Business
from24/7 Wall St.
2 months agoWarning This 2x Crude Oil ETF Could Double Your Gains or Your Losses This Week
UCO delivers twice the daily return of WTI crude oil, amplifying both gains and losses, with current geopolitical tensions in the Strait of Hormuz driving aggressive bullish trading activity.
Business
from24/7 Wall St.
1 day agoSOXL Lost 90 Percent in 2022 While Semiconductors Themselves Fell 35 Percent, And the Daily Reset Math Hasn't Changed
SOXL’s 3x daily leverage and daily reset cause volatility decay, making large drawdowns possible even when the underlying semiconductor index declines less.
Business
from24/7 Wall St.
2 months agoWarning This 2x Crude Oil ETF Could Double Your Gains or Your Losses This Week
UCO delivers twice the daily return of WTI crude oil, amplifying both gains and losses, with current geopolitical tensions in the Strait of Hormuz driving aggressive bullish trading activity.
from24/7 Wall St.
2 months agoGoldman Sees $5,400 Gold, Here's What That Target Means for DUST Investors Right Now
DUST is a 2x daily inverse ETF designed to deliver twice the opposite of GDX's daily return. It is a short-term tactical instrument built for traders who expect gold miners to pull back, not a long-term hold. The fund launched in December 2010 and has grown to approximately $185.8 million in net assets, reflecting sustained interest in tactical gold miner hedges.
Business
from24/7 Wall St.
2 months agoGold Is Hitting New Highs: One 2x ETF Is Doubling Every Move
Gold pays no interest or dividends, making its appeal highly sensitive to what investors can earn elsewhere. When real yields fall, gold becomes comparatively more attractive. The 10-year Treasury yield has dropped from 4.29% in early February to 4.06% as of early March, coinciding directly with gold pushing to new highs.
Venture
from24/7 Wall St.
4 months agoEarn 8% and (Potentially) 3x the S&P's Return This Year, but There Is a Catch
FAS uses swaps and derivatives to deliver three times the daily return of the Financial Select Sector Index. When JPMorgan Chase & Co. ( NYSE:JPM), Bank of America Corporation ( NYSE:BAC), and Visa Inc. ( NYSE:V) (the fund's largest holdings) climb 2% in a day, FAS targets a 6% gain. The fund holds $2.5 billion in assets, with 59% in financial stocks and roughly 33% in cash instruments and swaps that create the leverage.
Business
[ Load more ]