2017 was a good year for investors as the S&P 500 increased 19.42%, but unfortunately, not all investors saw their investments grow in value during the year. Investors who had purchased some different Exchange Traded Funds saw their investments nearly disappear during what will be referred to as an “up” year for investors and the stock market.
What is not surprising though is that seven of the nine most prominent ETF losers of 2017 had something to do with investing in the Volatility Index. The worst performer was the ProShares Ultra VIX Short-Term Futures ETF (UVXY), falling 93.96%. This fund provides 2X exposure to short-term, first and second month, VIX futures. The UVXY is a fund essentially will offer investors a way to make money if the VIX itself increases. Furthermore, because this fund is leveraged 2X, if the VIX increases by 10%, UVXY investors will make 20%. But, due to the fund's exposure, it has high carrying costs, meaning investors who hold the fund for more than one day will lose money due to those roll costs.
Therefore, the UVXY needs both the market to be volatile regularly for investors to make any money, even over a small period of time. In 2018 its unlikely UVXY will lose as much as it did in 2017 because the end of 2016 was highly volatile following the election of President Trump. Continue reading "Did You Own Any Of The Worst ETFs of 2017"→
The world of Exchange Traded Funds is massive and growing every day. Whether it’s a simple index fund to a specialty fund that focuses on a very niche industry, you can most likely find an ETF that is right for you. I often tout the S&P 500 index funds for their low cost and how easy they are for a non-financial savvy investor to get into the market and start investing.
But, for those who have a solid understanding of the markets, the risks, and enjoy finding new investments, I love highlighting the niche ETF's I find. One of my favorite specialty ETF's is the PureFunds ISE Cyber Security ETF (HACK). HACK tracks an equal-weighted index of companies that are actively involved in the cyber security industry.
With the recent global hack that locked users out of their computers and demanded a ransom be paid, the HACK ETF received little attention, while the companies it owns received a lot. That attack once again highlighted the importance of cyber-security and how cyber-attacks are here to stay and will only likely become more prevalent with time. Continue reading "Another Big Cyber-Security Hack, When Should You Buy The HACK ETF"→
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."
It would almost seem like MarketClub's Trade Triangles could see into the future, but you won't find any mumbo-jumbo or "black box" technique hiding behind our symbols, just market-conquering technical analysis.
If you tuned into last week's MarketClub TV show, you heard Adam talking about the Proshares Ultra-Short inverse etf, SKF.
MarketClub gave SKF gave a green monthly Trade Triangle on May 24th - nearly 3 months ago(!) with an exit on June 29th (profit of 1.06%). Then, a re-entry point occurred on July 18th and if you bought then, you'd be up 32.71%!
Even if you didn't get in until the morning after Adam talked about it on MarketClub TV, you STILL be up 28.33%!
I don't think we could make it any easier if we tried.