That was my reaction when I found this article from Index Universe via Seeking Alpha. ProShares has filed to launch 66 new ETFs.
ProShares (part of ProFunds) has filed for a double long, short and double short for the following;
Russell 2000
S&P Small Cap 600
S&P/Citigroup 500 Growth
S&P/Citigroup 500 Value
S&P MidCap 400/Citigroup Growth
S&P MidCap 400/Citigroup Value
S&P SmallCap 600/Citigroup Growth
S&P SmallCap 600/Citigroup Value
Dow Jones U.S. Basic Materials
Dow Jones U.S. Biotechnology
Dow Jones U.S. Consumer Goods
Dow Jones U.S. Consumer Services
Dow Jones U.S. Financials
Dow Jones U.S. Health Care
Dow Jones U.S. Industrials
Dow Jones U.S. Oil & Gas
Dow Jones U.S. Precious Metals
Dow Jones U.S. Real Estate
Dow Jones U.S. Semiconductors
Dow Jones U.S. Technology
Dow Jones U.S. Telecommunications
Dow Jones U.S. Utilities
If these get approved will you need them? Will anyone need them? With a long list like this there will be funds that do attract a lot of interest and ones that don't. This is far from insight but just the nature of things in ETF land.
I hope they get approved. I like the idea of being able access more parts of the market in different ways without having to pick stocks. Long time readers will know I use common stocks the vast majority of the time (despite all the writing I do about ETFs). More specifically I will use whatever tool I think best captures the effect right now. Most of the time I conclude that is a stock but not always.
I concede there is very little chance I will ever need double short semiconductors but who knows what the market will bring three years from now. This list, if approved, simply creates more choice which I view as positive.
While we are at it, anyone working on a VIX ETF or any foreign short, double short or double long ETFs?
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18 comments:
How sweet it would have been to have had the double long semi etf back aroung 1995....
If wishes were horses.....
g
Roger, I just saw a filing by Rydex, Currencyshares Swedish Krona. Do you have an opinion on this that you can share?
FXS, Swedish krona, has been trading for a couple of months now. I have disclosed many time on this site and in an article on RealMoney that I won it personally and for clients.
Rates are going higher there, growth is higher there than in euroland and the election coming up has a chance to put in a more conservative, relatively speaking, administration. The conservativesd are favored in the polls last I looked.
In time I have had it is up a little then down a little w/o much movement, which is fine as I view this as a cash investment and some protection if the dollar gets smacked hard.
I'll see your "Sweet Fancy Moses", and raise you a "Knights of Columbus". That is a lot of ETFs. Thing is, I see more of a need for ETFs that focus on overseas products, vs micro trading the U.S. markets.
Ron Burgundy?
By the beard of Zeus.
Uncle Jonathan's corn cob pipe
You seldom need any financial asset. However, you may want a double-short semiconductor ETF in the relatively near future.
Hey double Down (Swingers reference) that is a good way to put it. It would be a utility that does not now exist.
It's getting old with your pump of seeking alpha everyday. Seeking Alpha rarely presents solid information. A Cramer recap need I say more? Your posts continue down a shameful path, please stop the needless shoe licking.
sorry you feel that way, but attriubtion of content is normal blog ettiquete as I understand it.
I sold 75% of my energy at the end of August. If only there were a double short XLE! These shoulder season sell-offs are so predictable. You'd think they'd stop working.
PS: anyone know how these double long/double short things work? I presume futures or options or something like that.
generally the double shorts use futures and options. Not sure what the double short sector etfs will do, i'll read if they get approved.
Is it too early to call a "ETF bubble"? You heard it here first.
ETF bubble?
There are thousands of OEFs. The 1990s had an explosion in the number of OEFs. I'm not sure that a product can be a bubble. If we saw ETF after ETF in just on area like with products cated to internet stocks that seems more plausible.
For the dollars in every domestic ETF added together is less than the market cap of Exxon. I believe the dollars invested in all OEFs is in the trillions.
While there is excess, bubble may not be right. Further as many have no or very little utility they are like to be closed like OOO was.
Roger, let's imagine a VIX ETF is not close to happening (I do not know, just playing out theoretically). Is there any CURRENTLY AVAILABLE way I can participate in VIX index movements? Can one buy options on the VIX index?
In re VIX investing. There are VIX index options, but they are european-style options. So they can only be excercised on the day of expiration. There are VIX future's but those tend to be a little big for retail investors.
As for all these short/double ETF's some of them are very useful.
For example it will now be possible to surf the growth/value small/big anomaly very easily. Just buy the 2X Long S&P SmallCap 600/Citigroup Value, while holding 1XShort S&P/Citigroup 500 Growth.
The levered Precious metal's ETF will be perfect for gold junkies that want an investment with moxie.
If you assume that DJ Precious Metals moves like GDX, which it self moves roughly 2x to gold. The double long/short ETF's will move 4X relative to gold.
A final use of these ETF's will be for portable alpha strategies. I.e if you wanted $10,000 of Semi exposure, you would buy $5000 of the 2X Semi ETF and put $5000 in an MMF/TIP fund. The net result is $10,000 worth of semi exposure + the interest on $5000. You also have a bit of principal protection because if the Semi's flame out, the most you can lose is $5000.
Hi,
is there already a VIX ETF?
Maybe in the meantime some party launched such an ETF?
I would be very interested if anybody has found a VIX ETF.
With kind regards,
Harm
Netherlands
no VIX ETF yet.
I am not sure one is even in registration.
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