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Etfs

Understanding ETFsHello traders, in this post I will explain different types of ETFs and what is an ETF (Exchange-Traded Funds). ETF for example is a package of different stocks that have similar characteristics. One characteristic could be that they all are in the same sector. Some ETFs track indexes, commodities, and more. Those packages are listed on an exchange and are traded just like stocks. Traders and investors use ETFs to diversify with the provided indexes (or other products) with lower costs, or if the trader can’t trade in futures contracts, it is possible to use ETFs that are related to a specific future. Also, there are options on ETFs that can be used as an alternative for expensive indexes. Leveraged ETFs Most of the ETFs are trading in a 1:1 ratio, for example, NASDAQ 100 is currently at $12621 and the relevant ETF QQQ is $307.8, the difference is 1 to 40, but the returns are the same (1:1). The ETF NUGT on the other hand is moving with correlation to the gold miners index, but if the index return will be 10%, the ETF NUGT return will be 20%, because it is leveraged 2 to 1. Those kinds of ETFs are not for investors or long-term traders, only for the short term. This is because the returns are multiplied by 2. If the index will move down 7% NUGT will move down 14%. Eventually, it will move substantially lower in price because there will be a major correction of 30%+ that will cause a 60%+ drop in price. Thus, there will be a split. If you look at September 2012 you can see that NUGT price is $36000, this is because there were many splits due to the phenomenon I described above. NUGT was never really traded at $36000. In the chart, the orange line NUGT. Moving 300% between March to August, the blue line GOLD 40%. Reverse ETFs ETFs that move in the opposite direction to the index. For example, DUST is a leveraged ETF and going in the opposite direction to the gold miners index. In the chart, the green line DUST. Decreasing substantial percents due to leverage. ETFs that based on Futures There are two types: ETFs that own the commodity – those ETFs are moving almost the same as the commodity itself. For example GLD In the chart above, the blue line is the GOLD price in cash, the red line is GLD. ETFs that buy the futures of the commodity and not the physical commodity, don’t track the commodity with the same returns as the previous type, for example, VXX (VIX), USO (oil), UNG (gas). As discussed in the previous post Futures have a time premium. When you buy ETF that is based on futures, that means that you buy also the premium attached to that future. As time passes, that premium is lost, and then the ETF buys the next contract with a new time premium. As time will pass, you will lose this premium also… and so forth… This is something to be aware of.
AMEX:NUGTEducation
by ZoharCho
5
Mr. West on ETF of the day The Exchange Traded Funds (ETF) are a combination of other traded public companies that are gathered together based on sector, industry, and performance. The SPDR S&P Kensho Final Frontiers ETF, ticker symbol (ROKT) has been performing at a high rate. For the past several months, ROKT has grown 70% since it's sharp drop in March. (See image link below) The ETF total net assets consist of top companies like; Maxar Technologies Inc, Virgin Galactic Holdings Inc, Honeywell International Inc, Heico Corp, Lockheed Martin Corp and many more companies that reflect the Industrial and Technology industries. According to Watch Market, ROKT has a strong portfolio that focuses more on Industry market which is at 86%, Technology at 10%, and Oil & Gas at 3%. Majority of these Industry companies are looking to push the envelope of space and space materials like Northrop and Grumman and Virgin Galactic. It is trading at 38.59 a share and has a low of 38.53. My prediction that this will continue to perform over the next 30 years as space exploration will tend to be a mission for many top Space companies.
AMEX:ROKTLong
by Grantw04
$GUSH Moon: Silly HIGH ROI looms as real possibility in this ETF$GUSH has so much latent potential in a healthy economy and is a top ETF in any energy investor's choices. To call a previous annual high back to reality would bring a rapid gain to all positioned in this ETF which is managed by Paul Brigandi. He basically put a package (assembled) today that *nearly* matched one of the emerging stocks in the oilfield arena: $LBRT. Liberty gained 6+% while $GUSH was +5.8% on the respective entrance points. Liberty provides a certain steady gain in cyclical fashion while the leveraged ETF hedge fund is basically a double BULL horn to the status of a world torn between two exclusive outcomes: COVID hotspots while a vaccine looms in the very near future. $USOIL has had its uncertainty and was fighting 40/bar. resistance for the last several months, But that, too, appears to be coming to its end, and the possibility that crude climbs 45 per barrel before the "holiday season" is still fully within the play. Good luck whatsoever your plans, but I have shortened my interests to two positions, both mentioned here- LBRT and GUSH. There is an off-chance of re-entering a position on Halliburton but a 14.2 entrance point isn't exactly enticing - just feeling the pulse of $HAL. As it is. VIVA GUSH. Liberty may match it growth wise for a while, but GUSH is a leveraged fund that will payout nicely in a bull run for oil..t. Two positions I AM VERY LONG ON, but one chart here, just $GUSH. It's the attractive ETF that is about to re-peak, return, to high levels already realized within the last six-months. Adios. BDR. Note: See related idea from the day this position was first entered.
AMEX:GUSH
by BDRTrigger33
AGQ - a Proshares Ultra ETF with potential to 'fly'ProShares Ultra Silver (AGQ) ProShares Ultra Silver seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Bloomberg Silver SubindexSM. This leveraged ProShares ETF seeks a return that is 2x the return of its underlying benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, holding periods of greater than one day can result in returns that are significantly different than the target return and 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.
AMEX:AGQLong
by FX_Professor
GOLD 1D - info !!!-> What has happened? -Technology stocks, which are popular this year, have been up for a second week, but other key stock indices have remained resilient, with a weak dollar indicating that investors have confidence in the next rally. All of this suddenly collapsed yesterday, when European indices fell and the US dollar rose sharply, causing commodity prices to fall from gold to oil. === -> What are the reasons? the following reasons were key: - Technology stocks are extremely expensive - many ratios are approaching highs from the dot-com bubble - The offer of new Tesla shares indicated that these technology shares may be overvalued - European coronavirus statistics are deteriorating - new restrictions are being introduced - New reports have shown that large banks around the world have contributed to money laundering - The USD was exceptionally oversold by speculators (according to CFTC reports), with negative news closing some of these positions, triggering the sale of gold and silver === -> What's next? -This has been the sharpest correction since at least June and in some markets since March. At this point, this could only be seen as a cooling off of over-optimism, but a more pronounced decline cannot be ruled out. === -> Analysis: The price of gold broke the main 75-day moving average, which supported the rising trend. The point of support is not so clear now. The most likely point is the August 12 intraday low of $ 1,865, just above the 150-day moving average. Gold trades close to the $ 1,900 ounce level. Recently, gold has left the triangular formation. We see further support near the level from August 12 . However, the size of the March correction suggests that the price could fall to as much as $ 1,700 an ounce in the event of panic. However, such a decline could only come with a significant strengthening of the USD . ->Gold: - The recent declines are primarily the strengthening of the US dollar - The positions of large gold traders are not reduced as significantly as in February and March. ETFs are still buying funds - Recent history shows that during sales, gold may fall as the USD strengthens. In the long run, however, there is still a chance of continued profits - From a technical point of view, the market is settling from the breakthrough of the triangular formation.However, we expect more significant declines in gold only if the markets enter a "panic" mode. - History shows that corrections within the bull market are not exceptional. - The development of the positions of large traders and the purchases of ETF funds show that the market is not yet as frightened as in March. On the other hand, it will depend very much on the movements of the US dollar. -> If you have any questions or concerns, feel free to comment in the comments section. If you like my idea you can support it with like. -This is not financial advice. Trade safe!
TVC:GOLDShort
by erikpolakk
3
A simple flow indicatorAn alternative way of assessing currency flow is the ratio between the ETFs of each currency. For example, the EZU that gives exposure to a developed market countries using the Euro currency, divided by IVV that gives exposure to large, established U.S. companies. The direction of this ratio shows us whether companies in one country (or region) are growing faster than the other. The greater the growth of companies, the greater the country growth and productivity, which creates a virtuous cycle and currency appreciation.
Education
by blacksheepforex
JETS ETF Call Options With Bears ProtectionJETS invests in both U.S. and non-U.S. companies involved with the airline industry, including passenger airlines, aircraft manufacturers, airports and terminal services companies. Due to COVID-19 it's one of the weakest sectors and from my observations it seems to fall first and raise last vs the S&P 500. As countries are slowly opening and getting a grip on the virus or at least are forced to push forward to avoid further economic impact, JETS ETF could potentially move up. I am around 70% inclined to this, especially since price seems to have breakthrough a range of 15.79 - 11.28 To protect myself from bearish moves. I loaded up on call contracts at a higher strike. This means that no matter how low price goes I will always get +$875. However my profits are capped at strike 20.99 with my risk being price moving upwards beyond strike 21.45. The plan of course would be to close the trade before. Sell Calls 31 July - Strike 21, 0.3, Qty 45 Buy Calls 31 July - Strike 18, 0.95, Qty 5
AMEX:JETSLong
by Ronin_trader
Real Estate crash coming?It has been a long time since our last ETFs discussion. Today I have something to share. IYR (US Real Estate) is getting ready for a new decline. COVID is a real disaster for an offline business. Thousands of restaurants and other retail businesses have already closed and this number will be increasing. It is a dangerous sign. With that in mind, we can experience the start of a new decline in the USA commercial real estate in the coming 2 – 3 months. Once the destruction of earning levels reflects into the economic cycles, banks will tighten lending opportunities. That means the number of capable buyers will decrease at a time when home inventories may begin to skyrocket. Does it remind you of something? – It is very similar to what happened before the 2008-09 credit crisis. Pay attention to the Case-Shiller data. It is showing home price levels had already exceeded 2006-07 levels. So, what do we have? – Extremely high price levels, combined with the uncertainty of future earnings, unemployment, a big number of closed retail businesses, falling consumer confidence, layoffs, etc. What result can we expect? Real Estate ETFs can decline another 30 – 50%. So, if you deal with USA commercial real estate, it makes perfect sense to hedge your risks. And active traders have another pending opportunity to get substantial gains.
AMEX:IYRShort
by UnknownUnicorn1156963
1
SPDW: Another SPDR ETF to add to your long-term portfolioSPDW: Another SPDR ETF to add to your long-term portfolios. Just a reminder: the IRS is allowing contributions until July 15th to your retirement accounts! So, if you have a couple thousand, I strongly recommend taking advantage of opening a Roth IRA. Remember it is never too late to start saving! Another addition I have made to my portfolio is $SPDW. The SPDR Portfolio Developed World ex-US ETF is an excellent way to diversify your holdings to the global market without adding additional exposure to the US Markets. Additionally, $SPDW offers a 3.64% Distribution Yield (TTM) (30 Day SEC yield of 2.84%) without the risks that are commonly attributed to emerging market funds. The fund consists of well-known global corporations; $NESN (Nestle) 1.69%, $ROG (Roche) 1.40%, SMSN (Samsung) 1.26%, $NOVN (Novartis) 1.23%, $SAP (SAP) 0.81%, and $AZN (AstraZeneca) 0.80%. FactSet analysts give the ETF a “A” rating and XTF a 9.4 out of 10.0. The expense ratio of the ETF is miniscule at 0.04%. $SPDW appears to have stabilized from March lows but is still trading below its February highs. It would appear that this fund hasn’t fully recovered but is still an excellent choice for a long-term buy. Long 150 Shares SPDW.
AMEX:SPDWLong
by luminaryfi
1
$SPYG: An ETF that holds the winners of the "coronavirus market"Recently, I have been cleaning up my Roth IRA and other qualified retirement accounts. Most analysts are now recommending the move out of U.S. Treasury bonds due to their low-yields (and almost certain – continued low yield over the next decade!). I am a fan of ETFs for long-term investing. The benefits are numerous compared to stock selection and mutual funds. Access to highly priced stocks (Alphabet, Amazon, etc.), monthly distributions, and low expense ratios, are just a few of the benefits to ETFs for retirement accounts. Which brings us to $SPYG or the SPDR Portfolio S&P 500 Growth ETF. SPYG holds the winners (or should I say survivors) of the current market. The current breakdown of the fund is $MSFT (10.11%), $AAPL (9.66%), $AMZN (7.87%), $FB (3.72%), $GOOGL (2.80%), $GOOG (2.73%), $V (2.13%), $MA (1.73%), $NVDA (1.53%), and $NFLX (1.39%). Analysts rank $SPYG highly – FactSet ($FDS) gives the ETF an A rating and XTF.com rates $SPYG a perfect 10.0 out of 10.0. The technical analysis shows that the fund has recovered nicely since the March lows. Even with the risk of another Covid-19 outbreak, $SPYG holds companies proven to survive – perhaps even thrive – in the new market. Long 100 $SPYG @ 42.46. Total Long 1000 $SPYG (accumulated lots).
AMEX:SPYGLong
by luminaryfi
"CLOU" A Cloud ETF with Continued GainsGlobal X Cloud Computing ETF continues to take off as the broader market makes sideways or smaller increases in comparison. The price is very attractive at around $20 per share that offers exposure to Twilio "TWLO" 6.06%, Zscaler "ZS" 5.04%, Zoom Video "ZM" 4.57%, Coupa Software "COUP" 4.45%, Shopify "SHOP" 4.10%, Paycom "PAYC" 3.94% and quite a few others according to XTF. It should be noted that there is expense ratio of 0.68%. The expense ratio is high for larger ETFs, but just slightly above average for newer niche ETFs. The ETF has 635.25 AUM (Assets under Management) and a TTM Dividend/Distribution yield of 0.04% according to FactSet. Unfortunately, this is not an ETF that will provide much return in the form of dividends. There are quite a few dominant players in the ETF that have seen exploding gains since the Covid-19 pandemic. There is also widespread belief that the behaviors established during the lockdowns will extend long beyond the pandemic. Many companies have come out in support of allowing employees to continue to work from home. Additionally, primary, and secondary education students may also continue to learn from home - accelerating a trend in online education. If these predictions hold true, there will be much growth to be gained from the underlying companies in "CLOU". There are very few filters on what companies are permitted in the fund. Global X states that any company that earns at least $500M from software or applications, provide virtualized computing from a PaaS, and cloud computing data centers is eligible for the fund. The long-term value of the fund looks great for growth. The EMA 12 is at $20.00 and the EMA 26 is at $19.59 (these values were chosen as they are corresponding to the MACD indicator). However, there are some significant signs that the fund may be overbought according to the Stochastic RSI and the MFI. The Stoch RSI K is at 99.41 and D at 99.61 and the MFI 14 at 86.26. These are signs that the fund may be extremely overbought. Although, it should be noted that we are looking at an ETF and not common stock of any one company. The linear regression shows a very promising trend with the price very smoothly moving around the mean within a standard deviation of 2.5 at a length of 100 and a Pearson’s R Correlation Coefficient of 0.9043. Therefore, it would be a strong signal to wait for an entry point if you have not already purchased this ETF. At the time of this writing, a price between approximately $19.30 and $20.00 would be an acceptable entry point into this ETF. LONG 100 Shares CLOU @ 19.73
NASDAQ:CLOULong
by luminaryfi