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ProShares Short VIX Short-Term Futures ETFInvestment Thesis ProShares Short VIX Short-Term Futures ETF (SVXY) is a fund that allows you to bet on a decline in volatility with a 0.5x ratio. That is, with a 10% decrease or increase in volatility, this fund will respond with a 5% movement in the opposite direction. Volatility has significantly increased amid uncertainty due to mutual tariffs between the U.S. and the rest of the world. This presents good opportunities for opening long positions in SVXY. The risk/reward ratio looks attractive, given that current VIX quotes are near the levels reached during the correction amid the pandemic in 2020. It is also worth noting that the share of S&P 500 components above the 50-day moving average is at local lows, which historically happens rarely and may signal a local potential for market recovery, and thus, a decline in the level of "fear" in the market. In the base case scenario, we expect that countries will be able to reach agreements regarding the imposed tariffs, which will smooth out the overall impact on the U.S. economy and lead to a reduction in market uncertainty. Target price – $46.8 Recommendation – Buy Upside potential – 28% We recommend setting a stop-loss at the level of $29.9.
CBOE:SVXYLong
by FreedomHolding
ETFs vs Mutual Funds: Differences and Advantages ETFs vs Mutual Funds: Differences and Advantages Exchange-traded funds (ETFs) and mutual funds are two of the most popular investment options, each offering unique features and advantages. While both provide access to diversified portfolios, their differences in structure, management, and trading make them suitable for different strategies. This article breaks down the key distinctions between exchange-traded funds vs mutual funds and how to choose between them. What Are ETFs? Exchange-traded funds, or ETFs, are investment vehicles that allow traders to access a diverse range of assets through a single product. An ETF is essentially a basket of investments—such as stocks, bonds, or commodities—that typically tracks the performance of an index, sector, or specific theme. For example, SPDR S&P 500 ETF Trust (SPY) follows the S&P 500 index, providing exposure to the largest companies listed on US stock exchanges. What sets ETFs apart is how they’re traded. Unlike mutual funds, which are only bought or sold at the end of the trading day, ETFs trade on stock exchanges throughout the day, just like individual shares. This means their prices fluctuate as demand and supply change, giving traders the flexibility to enter or exit positions at market prices. ETFs are known for their cost-effectiveness, as most are passively managed to mirror the performance of an index rather than exceed it. This passive structure usually leads to lower management fees compared to actively managed funds. Additionally, ETFs are often transparent, with their holdings disclosed daily, so investors know exactly what they’re buying. ETFs come in various types, from those focused on specific sectors, like technology or healthcare, to broader options covering entire economies or bond markets. This variety makes them a popular choice for traders and investors looking to diversify or target specific market opportunities. What Are Mutual Funds? Mutual funds are investment products that pool money from multiple investors to create a diversified portfolio, typically managed by a professional fund manager. These funds invest in a wide range of assets, including stocks, bonds, and other securities, depending on the fund’s objective. For instance, an equity mutual fund focuses on stocks, while a bond fund invests primarily in fixed-income securities. One defining feature of mutual funds is their pricing. Unlike ETFs, mutual funds aren’t traded on stock exchanges. Instead, they are bought and sold at the fund’s net asset value (NAV), which is calculated at the end of each trading day. This makes them more suited to long-term investment strategies. Mutual funds often appeal to investors looking for a hands-off approach. The fund manager handles the selection and management of assets, aiming to achieve the fund’s stated goals—whether that’s generating income, preserving capital, or achieving long-term growth. However, this active management comes with higher fees compared to ETFs. These costs include management fees and sometimes additional charges like entry or exit loads, which can eat into returns over time. Mutual funds also often require a minimum investment, making them less accessible for some investors. That said, they offer a wide variety of options, from sector-specific funds to diversified portfolios, providing flexibility for different investment goals and risk preferences. Are There Differences Between an ETF and a Mutual Fund? ETFs and mutual funds share similarities—they both allow investors to pool money into diversified portfolios. However, the differences between ETFs and mutual funds can significantly impact which one is better suited to an investor’s goals. Trading and Pricing ETFs are traded on stock exchanges continuously during market hours, similar to individual shares. Price fluctuations are based on market demand and supply. In contrast, mutual funds are priced only once per day after the market closes, based on the fund’s net asset value (NAV). This makes ETFs more appealing for those seeking flexibility and the ability to react to market movements, while mutual funds cater to long-term investors less concerned with intraday price changes. Management Style ETFs are mostly passively managed, designed to track the performance of a specific index, sector, or asset class. Mutual funds, on the other hand, often feature active management. This involves fund managers selecting assets to outperform the market, which can offer potential opportunities for higher returns but also comes with increased costs. Fees and Costs ETFs typically come with a lower expense ratio compared to mutual funds, making them more cost-efficient. This is due to their passive management approach and lower operational costs. Mutual funds may charge higher fees to cover active management and administrative expenses. Additionally, mutual funds may have extra costs like sales charges or redemption fees, whereas ETFs incur standard brokerage commissions. Liquidity When considering mutual funds versus ETFs, liquidity becomes a critical factor, as ETF prices change intraday, while mutual funds are limited to end-of-day pricing. This difference can influence how quickly you can access your funds. Tax Efficiency ETFs tend to be more tax-efficient because of their structure. When investors sell ETF shares, transactions occur directly between buyers and sellers on the exchange, limiting taxable events. In mutual funds, redemptions often require the fund manager to sell securities, which can result in capital gains distributed to all investors in the fund. Minimum Investment Mutual funds often require a minimum initial investment, which can range from a few hundred to thousands of dollars. ETFs, however, don’t have such requirements—traders can purchase as little as a single share, making them more accessible for those with smaller starting capital. ETF CFD Trading ETF CFD trading offers a flexible way for traders to speculate on the price movements of exchange-traded funds without the need to buy them on stock exchanges. CFDs, or Contracts for Difference, are derivative products that track the price of an ETF, allowing traders to take positions on whether the price will rise or fall. This approach is particularly appealing for short-term speculation, making it a useful complement to traditional long-term ETF or mutual fund investing. Flexibility One of the standout features of ETF CFDs is their flexibility. Unlike investing directly in ETFs, CFD trading enables you to capitalise on price fluctuations without owning ETF shares. Traders can go long if they anticipate a rise in the ETF’s value or short if they expect a decline. This ability to trade in both directions can potentially create opportunities in both bullish and bearish markets. Moreover, CFDs allow for trading over shorter timeframes like 1-minute or 5-minute charts, providing potential opportunities for scalpers and day traders. Leverage Leverage is another significant feature of ETF CFDs. With leverage, traders can gain larger exposure to an ETF’s price movements with smaller initial capital. For example, using 5:1 leverage, a $1,000 position would control $5,000 worth of ETF exposure. However, you should remember that while this magnifies potential returns, losses are also amplified, making risk management a critical component of trading CFD products. Costs Actively managed ETFs can charge expense ratios to cover management and operational costs. CFDs eliminate these fees, as traders don’t directly invest in the ETF’s assets. However, both ETF investing and ETF CFD trading include brokerage fees or spreads. Wider Range of Markets With CFDs, traders can access a variety of global ETF markets through a single platform. This reduces the need to open accounts in different jurisdictions, saving on administrative and currency conversion costs. CFD trading is popular among traders who want to take advantage of short-term price movements, diversify their strategies, or access ETF markets straightforwardly. While traditional ETFs are often favoured for long-term growth, ETF CFDs provide an active, fast-paced alternative for traders looking to react quickly to market changes. Use Cases for ETFs and Mutual Funds In comparing ETFs vs mutual funds, it’s important to recognise their use cases based on an investor’s goals, strategies, and time horizons. ETFs ETFs are used by investors seeking flexibility and real-time market engagement. They are attractive for those who want to take advantage of price movements or actively manage their portfolios. For example, an investor might focus on sector-specific ETFs, like technology or energy, to capitalise on industry trends. ETFs also offer a lower-cost option for diversification, making them useful for those building broad exposure across markets without significant capital. Additionally, ETFs may be effective for hedging. An investor with exposure to a specific market segment can use an ETF to potentially offset risks, especially in volatile markets. For instance, during an anticipated downturn in equities, an inverse ETF could be used to possibly mitigate losses. Mutual Funds Mutual funds are popular among long-term investors prioritising professional management. Their hands-off approach makes them appealing to individuals who prefer not to monitor markets daily. For instance, someone saving for retirement might opt for a diversified mutual fund that balances risk and growth over time. Mutual funds are also advantageous for accessing specialised strategies, such as actively managed funds focusing on niche markets or themes. While they typically involve higher fees, the tailored management can align with specific financial objectives. Factors for Choosing Between ETFs and Mutual Funds Selecting between mutual funds vs ETF options depends on an investor’s financial goals, trading style, and the level of involvement they are comfortable with in managing their investments. - Time Horizon: ETFs are popular among short- to medium-term investors and traders who prefer flexibility and the ability to follow intraday price movement. Mutual funds, on the other hand, are mostly used by long-term investors focused on gradual growth or income over time. - Cost Sensitivity: ETFs generally have lower expense ratios and no minimum investment requirements, making them cost-efficient. Mutual funds often involve higher management fees and, in some cases, additional charges like entry or exit fees, which can add up over time. - Active vs Passive Management: If you’re looking for a hands-off approach with professional oversight, actively managed mutual funds might be more appealing. However, if you prefer to track indices or specific sectors at a lower cost, ETFs might be more suitable. - Liquidity Needs: Investors who need quick access to their capital often prefer ETFs because they can be traded throughout the day. Mutual funds lack this intraday liquidity, as transactions are only processed at the trading day’s end. The Bottom Line Understanding the differences between mutual funds vs exchange-traded funds is crucial for selecting the right investment approach. ETFs offer flexibility and cost-efficiency, while mutual funds are popular among long-term investors seeking professional management. For those interested in ETF CFD trading, which allows traders trade in rising and falling markets, opening an FXOpen account provides access to a diverse range of ETF markets alongside competitive trading conditions. FAQ What Is an ETF vs Mutual Fund? An ETF is a fund traded on stock exchanges, offering intraday liquidity and lower fees, typically tracking an index or sector. A mutual fund pools investor money for professional management, priced once at the end of a trading day at its net asset value per share. Mutual Funds and ETFs: Differences ETFs trade like stocks, are generally more cost-efficient, and offer intraday liquidity. Mutual funds are actively managed, have higher fees, and are designed for long-term investing with end-of-day pricing. Is the S&P 500 an ETF or a Mutual Fund? The S&P 500 itself is an index, not a fund. However, it can be tracked by both ETFs (like SPDR S&P 500 ETF) and mutual funds, offering similar exposure but with differing management styles and fee structures. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
AMEX:SPYEducation
by FXOpen
1
NAM_INDIA A multibagger?Nippon Life India Asset Mgt. is engaged in managing mutual funds including exchange traded funds (ETFs); managed accounts, including portfolio management services, alternative investment funds and pension funds; and offshore funds and advisory mandates. The AUM(Asset under management) is 435000 crores and the quarterly sip is 4700 crore which is increasing every quarter with the increasing interest of people in stock market and mutual fund. The company has increased its net profit by 3 times in 4 years and is performing better as compared to its peers. The company is also expected to give a good quarter. It is an excellent buy for both short term and long term and it should be keep a definite place in portfolio. I am not a SEBI registered analyst. Please do your own analysis before investing. Do like and follow and share among your friends and family. Thank you.
NSE:NAM_INDIALong
by ronak16125
CAMS - A good buy for this yearCAMS Bharat’s largest registrar and transfer agent of mutual funds has given it's highest ever quarterly sales and profit ever which are 269 crs and 86 crs respectively. Also the chart patterns shows a reverse head and shoulder pattern. So we have a stock which is posting it's best ever numbers in its balance sheet which are supported by strong chart patterns. The stock is not at lifetime high also which makes it less riskier for investment purpose. Buy at current levels of 2882 and sell at 3890. The target price is within it's lifetime high. It will give a 35% returns. Hope you like my analysis. Please invest after your own analysis. Do like and follow. Thank you.
NSE:CAMSLong
by ronak16125
Aditya AMC quarterly result tradeAditya Birla Sun Life AMC Ltd the company of the old and prestigious Birla group has posted its best ever quarterly result with highest sales and net profit. The quarterly has profit has increased to 209 crore and its growth is supported by the accelerated growth of whole mutual fund industry. The target price is 700 for about 47% potential gain It is a high potential company because of the following factors- Return on capital employed >30 Debt to equity <0.1 Net profit preceding 12months >500 Net Profit latest quarter >100 Please do your own analysis before investing or trading. Thank you and do like and follow if you like my analysis.
NSE:ABSLAMCLong
by ronak16125
CAMS- 74% potential gain and moreAs mutual fund industry is growing in our country and Reliance also entering the segment companies like CAMS are a good investment. SOME IMPORTANT POINTS because it should be bought: - 1) The company is trading at 42% lower price than its lifetime high. 2) Potential gain of 74% till lifetime high. 3) It has a low P/E ratio in comparison to its competitors. 4) It has consistently increased its revenue and net profit every year from the last decade. 5) Company has been maintaining healthy ROCE of 62.32% over the past 3 years. 6) Campany is virtually debt free. The company will probably beat its previous lifetime high and make a new one in the near future. It may give manifold returns in 5-10 years. Thank you for reading it till the last. Hope it was an effective read.
NSE:CAMSLong
by ronak16125
1
NAM_INDIA excellent buy for long termNAM_INDIA is the largest player in asset management services in Bharat. The current level of the stock is a strong resistance. If broken it will give good returns in both short term and long term as mutual fund industry is growing at bullet speed in India. Some important points, it should be bought now are:- 1) Current PE ratio is 23.4 while lifetime median PE ratio is 27.8. 2) Last two years net profit of the company was highest ever. 3) Company is almost debt free. 4) Stock is providing a good dividend yield of 3.57%. 4) Promoter holding is strong 73.6% which means they believe in the growth potential of the company. 5) The company is present in 16 Indices. 6) Company has a healthy Return on Equity (ROE) track record of 22.93%.
NSE:NAM_INDIALong
by ronak16125
1
Listen to your eldersToday we will discuss the investment management conglomerate, BlackRock. They report earnings July 14 before the opening bell. BlackRock Inc. is one of the world’s leading asset management firms offering a range of risk management, strategic advisor, and enterprise investment system services. With about $7.8 trillion worth of assets under management (excluding money market assets), as of Sep 30, 2020, it caters to institutional, intermediary and individual investors. Their price action is an embodiment of their ability to execute. Listen to their commentary because it will be a huge indicator for the future of this market. BlackRock has more investing resources than any single entity. As the saying goes, listen to your elders
NYSE:BLK
by howdydany
1