At the beginning of May 2017 the wise, an all knowing Securities & Exchange Commission approved a new leveraged Exchange Traded Fund. While SEC approvals for new funds don’t often make headlines, the reason this was did because of the amount of leverage the new ETF offers and what it means for the future of investing.
On May 2, 2017, the SEC approved the ForceShares Daily 4x US Markets Futures Long Fund which will have the ticker "UP" and the ForceShares Daily 4x US Markets Futures Short Fund which will have the ticker "DOWN."
Yes, you did read that correctly, these are 4X funds which will deliver 400% the daily performance of the S&P 500. Previously investors had access to 3X funds, which offered 300% the daily moves of the indexes they track, but with this move, 400% may now seem to be the benchmark. Continue reading "Quadruple Leveraged ETF Approved and I Am Terrified"