125.57 0.00 (0.00%)
Pre-Market: 4:15AM EDT
|Bid||125.69 x 900|
|Ask||125.76 x 1000|
|Day's Range||125.39 - 126.31|
|52 Week Range||81.39 - 129.98|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||2.00|
|Expense Ratio (net)||0.90%|
The S&P 500 has rallied 19% from the December low, and is now 5% away from its all-time high. Investors can tap this opportunity by going long on the index with the help of ETFs.
Optimism is prevailing around U.S.-Sino trade, oil price and U.S. government shutdown. This should boost the following leveraged ETFs.
The S&P 500 is the benchmark U.S. equity gauges and one of the world's most widely used stock indexes. Around the world, trillions of dollars are benchmarked to the S&P 500.Here in the U.S., many of the largest index funds and exchange-traded funds (ETFs) are S&P 500 tracking funds. In the U.S., the world's largest ETF market, just four ETFs have over $100 billion in assets under management. Three of those funds are S&P 500 ETFs -- the SPDR S&P 500 ETF (NYSEARCA:SPY), the iShares Core S&P 500 ETF (NYSEARCA:IVV) and the Vanguard S&P 500 ETF (NYSEARCA:VOO).The S&P 500 and related funds are alluring for investors because these products are typically cheap, efficient and accurately reflective of the U.S. equity market. For investors willing to take on more risk in search of potentially higher returns, several leveraged ETFs offer exposure to the S&P 500, too.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Dividend Stocks to Buy for the Next 10 Months For risk-takers, here are some of the best leveraged ETFs tracking the S&P 500. Direxion Daily S&P 500 Bull 3X Shares (SPXL)Expense Ratio: 1.04%, or $104 annually per $10,000 investedThe Direxion Daily S&P 500 Bull 3X Shares (NYSEARCA:SPXL) is designed to deliver triple the daily returns of the S&P 500. So if the S&P 500 rises by 1% today, this leveraged ETF should rise by 3%. The operative word in the first sentence is "daily."Leveraged ETFs "seek daily goals and should not be expected to track the underlying index over periods longer than one day," according to Direxion.That is one point underscoring the risks of holding leveraged ETFs like SPXL for extended time frames. Another is the high fees associated with leveraged ETFs. There is little chance that, over the course of a year, SPXL will exactly mirror triple the performance of the S&P 500 and it is expensive for investors to learn that lesson as this leveraged ETF charges 1.04% per year.Think about that and then think about this: S&P 500 funds like IVV and VOO charge just 0.04% annually. ProShares Ultra S&P500 (SSO)Expense Ratio: 0.90%For traders that want to be involved with a leveraged ETF but want to decrease that juice, the ProShares Ultra S&P500 (NYSEARCA:SSO) is a fund to consider. Whereas the aforementioned SPXL looks to deliver triple the daily returns of the S&P 500, SSO attempts to deliver double the index's daily percentage performance.What that means is when the S&P 500 rises by 1% on a particular day, SSO should climb by 2%. While SSO offers reduced leveraged relative to a triple-leveraged ETF, it carries the same risks. * 10 Monster Growth Stocks to Buy for 2019 and Beyond "Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks," according to ProShares. ProShares UltraShort S&P500 (SDS)Expense Ratio: 0.90%Not all leveraged ETFs are bullish. Many are inverse and geared. The ProShares UltraShort S&P500 (NYSEARCA:SDS) is one of the largest such funds. Actually, SDS is one of the largest leveraged ETFs of any stripe.This is how this leveraged ETFs works. If the S&P 500 falls by 1% on a particular day, SDS should rise by 2%. Remember that this is a leveraged ETF and that the same risks that are relevant to bullish leveraged funds are applicable to SDS as well. Direxion Daily S&P 500 Bear 1X Shares (SPDN)Expense Ratio: 0.56%Not all inverse funds are leveraged ETFs. Some are just inverse, but inverse funds are often lumped in with leveraged ETFs, so the Direxion Daily S&P 500 Bear 1X Shares (NYSEARCA:SPDN) is worth highlighting here.SPDN is a good idea for the investor looking for downside protection without having to engage with a leveraged ETF. The Direxion fund's aim is similar: to deliver the same daily downside percentage of the S&P 500 when that index declines. As a non-leveraged ETF, SPDN can be held for long-time frames than leveraged equivalents and it is cheaper to do so as highlighted by SPDN's expense ratio. Over the near-term, SPDN is worth monitoring. * 7 Breakout Stocks In Early 2019 "Both the index and the bear fund are again approaching a cross at their 2018 starting prices," said Direxion in a recent note. "Bear in mind that CBOE's volatility index is still about where it was through October and November, 2018, which coincided with some of the market's biggest down days of the year. As in previous months with heightened volatility, it might not be entirely odd to see similar dramatic volatility in the months to come, as buyers and sellers fight it out as to whether to dig further out of the 2018 hole."As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post The 4 Best Leveraged ETFs to Buy appeared first on InvestorPlace.
Will the S&P 500 and ETFs tracking the index find support and rebound off the 50-day this week? Or will they slice through the line?
Leveraged exchange-traded products are alluring to investors looking to supercharge their returns to capitalize on short-term movements in the markets. While they are intended for advanced investors, it ...
After months of a volatile ride, the U.S. stock market is back on track with the S&P 500 extending its consecutive five-week rally. This is primarily thanks to a strong second-quarter earnings season and bouts of upbeat data that fueled optimism in the U.S. economy and offset the concerns over global trade. Per Factset, the S&P 500 earnings beat is on pace to be the highest beat rate since it began tracking the metric in 2008.
ProShares, a premier provider of ETFs, today announced that Ben Fulton has been named to the role of Managing Director. As a member of senior management, Mr. Fulton will contribute to the firm’s strategy and growing its business. Mr. Fulton’s principal responsibilities will include overseeing the company’s tactical products business.
If you’re familiar with or invest in exchange-traded funds, it’s likely you’ve heard of derivatives ETFs, a category of ETFs that use derivative instruments such as futures and forward contracts, swaps, options and even the use of debt to bet on the price movement of specific underlying assets. If you’re not familiar with derivatives ETFs, this article provides a theoretical situation to help explain the three types of derivatives ETFs you should know. Let’s say you have a portfolio that consists of just two ETFs, the first being the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which tracks the S&P 500 and the second being the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF), which tracks the ICE U.S. Treasury 7-10 Year Bond Index, a collection of U.S. Treasury Bills with maturities between 7-10 years.