Download or read book How Appropriate are Leveraged ETFs for Long term Investments written by Dennis Hummel and published by . This book was released on 2015-03-05 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2013 in the subject Business economics - Investment and Finance, grade: 2,7, University of Mannheim (Area Banking, Finance, and Insurance), language: English, abstract: Leveraged exchange-traded funds (LETFs) track the development of an underlying index with a certain multiplier. For compounding and non-compounding effects this is only guaranteed on a daily basis which raises concerns about their performance in the long run. After analyzing the LETF market in Germany, I ran a Monte-Carlo simulation of three multipliers across five different holding periods (one week to 4 years) to estimate the tracking error and I found that the multipliers deviate substantially for holding periods longer than one month. Using the rebalancing method with a 5% trigger proposed by other researchers, I was able to reduce the tracking error to negligible levels. In a nutshell, a buy-and-hold strategy using LETFs does not guarantee the multiplier in the long run and I recommend to invest directly in the index to participate from long-term stock market growth.

Download or read book Lifecycle Investing written by Ian Ayres and published by ReadHowYouWant.com. This book was released on 2010-05 with total page 358 pages. Available in PDF, EPUB and Kindle. Book excerpt: Diversification provides a well-known way of getting something close to a free lunch: by spreading money across different kinds of investments, investors can earn the same return with lower risk (or a much higher return for the same amount of risk). This strategy, introduced nearly fifty years ago, led to such strategies as index funds. What if we were all missing out on another free lunch that’s right under our noses? InLifecycle Investing, Barry Nalebuff and Ian Ayres-two of the most innovative thinkers in business, law, and economics-have developed tools that will allow nearly any investor to diversify their portfolios over time. By using leveraging when young-a controversial idea that sparked hate mail when the authors first floated it in the pages ofForbes-investors of all stripes, from those just starting to plan to those getting ready to retire, can substantially reduce overall risk while improving their returns. InLifecycle Investing, readers will learn How to figure out the level of exposure and leverage that’s right foryou How the Lifecycle Investing strategy would have performed in the historical market Why it will work even if everyone does it Whennotto adopt the Lifecycle Investing strategy Clearly written and backed by rigorous research,Lifecycle Investingpresents a simple but radical idea that will shake up how we think about retirement investing even as it provides a healthier nest egg in a nicely feathered nest.

Download or read book A Comprehensive Guide to Exchange Traded Funds ETFs written by Joanne M. Hill and published by CFA Institute Research Foundation. This book was released on 2015-05 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: Exchange-traded funds (ETFs) have become in their 25-year history one of the fastest growing segments of the investment management business. These funds provide liquid access to virtually every financial market and allow large and small investors to build institutional-caliber portfolios. Yet, their management fees are significantly lower than those typical of mutual funds. High levels of transparency in ETFs for holdings and investment strategy help investors evaluate an ETF’s potential returns and risks. This book covers the evolution of ETFs as products and in their uses in investment strategies. It details how ETFs work, their unique investment and trading features, their regulatory structure, how they are used in tactical and strategic portfolio management in a broad range of asset classes, and how to evaluate them individually.

Download or read book ETF investing for beginners written by Ludovic MARIN and published by MARIN. This book was released on 2023-11-10 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do you want to make money in the stock market but don't have the time or the necessary knowledge? So I have the solution for you: invest in ETFs (Exchange Traded Funds), also called trackers. By devoting one minute a month of your time to ETFs, you will get a financial performance superior to that of 90% of investors on the planet. Trackers are a great way for beginners to invest in the stock market. They are easy to understand, inexpensive and offer significant diversification. In this book, you will discover everything you need to know about ETFs: - What is an ETF?; - How do ETFs work?; - The advantages of ETFs; - How to choose an ETF; - Where to buy ETFs; You will also learn to: - Building a Diversified ETF Portfolio; - Invest in ETFs for the long term; - Using ETFs to Make Short-Term Gains. This book is a comprehensive guide to ETFs for beginners. The method I suggest will allow you to become financially independent. The book can be read in less than 2 hours and will then allow you to immediately be able to earn money, in a completely passive way, with the stock market. So what are you waiting for to buy it? * * * My name is MARIN Ludovic. I am a French entrepreneur, investor and philanthropist. I help people to improve their personal finance and personal development. For this, I am the author of several dozen books (available on AMAZON, APPLE, GOOGLE, KOBO...) and video training courses (available on UDEMY).

Download or read book ETFs for the Long Run written by Lawrence Carrel and published by John Wiley & Sons. This book was released on 2008-09-16 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for ETFs For The Long Run "As the title of the book suggests, ETFs are going to be an increasingly important reality for a broad class of investors in coming years. This book offers the reader real understanding of this growing force in our economic lives." —Robert J. Shiller, Arthur M. Okun Professor of Economics at Yale University, Co-founder and Chief Economist at MacroMarkets LLC "ETFs for the Long Run is a fascinating read. A seasoned financial industry journalist, Lawrence Carrel does an excellent job of highlighting exchange traded funds' meteoric rise in popularity over the last few years. A terrific book for anyone looking to grasp the ABCs of ETF investing." —Jerry Moskowitz, President, FTSE Americas Inc. "ETFs for the Long Run provides a unique combination of a detailed history of the development of ETFs, a clear explanation of the sophisticated mechanics of ETFs, an assessment of investors' choices amongst this dynamic product area, and unbiased recommendations for appropriate portfolio allocation to these efficient investment tools. Lawrence Carrel has done investors and the industry a great service in pulling these four elements together in a highly readable and often entertaining book. —Steven Schoenfeld, Chief Investment Officer, Global Quantitative Management, Northern Trust, and Editor, Active Index Investing Despite the incredible growth of exchange-traded funds (ETFs) and the fact they've been on the market for fifteen years, some investors are still either unaware of the effectiveness of ETFs or unsure of how to use them in their investment endeavors. That's why respected ETF expert and journalist Lawrence Carrel has written ETFs for the Long Run. Filled with in-depth insights and practical advice, this reliable resource puts ETFs in perspective and reveals how they can help you profit in both up and down markets. Page by page, Carrel takes you through the ins and outs of ETFs, including their history, the tax benefits and minimal charges associated with them, and the fundamental differences between ETFs and other types of investments. He also provides you with the resources and tools needed to trade ETFs and build your own ETF portfolio. You may have heard about ETFs while researching other investments or speaking with an investment advisor. If you want to learn more about them, this book will provide you with a clear understanding of what ETFs are, how they work, and how they can be used to create a low-cost, liquid, and diversified portfolio.

Download or read book Leveraged Exchange Traded Funds written by Peter Miu and published by Springer. This book was released on 2016-04-29 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leveraged Exchange-Traded Funds (LETFs) are publicly-traded funds that promise to provide daily returns that are in a multiple (positive or negative) of the returns on an index. To meet that promise, the funds use leverage, which is typically obtained through derivatives such as futures contracts, forward contracts, and total-return swaps. As of the end of 2012, there were over 250 LETFs in North America with total assets of approximately $32.24 billion. While the amount of assets held by these funds is still small, their popularity continues to grow as their trading volume is significantly larger and much more dynamic than traditional, non-leveraged ETFs. This comprehensive guide to LETFs provides high-level practitioners and researchers with a detailed reference tool for navigating the market and making informed investment decisions. Written from a measured analytical perspective, Miu and Charupat use clear and concise explanations of all important aspects of LETFs, focusing on such key elements as structure, pricing, performance, regulations, taxation, and trading strategies. The first two chapters set the stage for the book by identifying exactly what LETFs are and how they are regulated. The following chapters then look to bridge theory with practice to dive deep into the mechanics, portfolio rebalancing techniques, and daily compounding effects that make investing in these funds so lucrative.

Download or read book Retire Before Mom and Dad The Simple Numbers Behind A Lifetime of Financial Freedom written by Rob Berger and published by Glenbrook Press. This book was released on 2019-08-29 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Retire Before Mom and Dad, you'll learn how to unlock the superpower inside of you that is capable of transforming almost any income into lasting financial freedom. And, you'll discover that it's not about scrimping and sacrificing to get there.

Download or read book The 3 Signal written by Jason Kelly and published by Penguin. This book was released on 2015-02-24 with total page 338 pages. Available in PDF, EPUB and Kindle. Book excerpt: Take the stress out of investing with this revolutionary new strategy from the author of The Neatest Little Guide to Stock Market Investing, now in its fifth edition. In today’s troubling economic times, the quality of our retirement depends upon our own portfolio management. But for most of us, investing can be stressful and confusing, especially when supposedly expert predictions fail. Enter The 3% Signal. Simple and effective, Kelly’s plan can be applied to any type of account, including 401(k)s—and requires only fifteen minutes of strategizing per quarter. No stress. No noise. No confusion. By targeting three percent growth and adjusting holdings to meet that goal, even novice investors can level the financial playing field and ensure a secure retirement free from the stress of noisy advice that doesn't work. The plan's simple technique cuts through the folly of human emotion by reacting intelligently to price changes and automatically buying low and selling high. Relayed in the same easy-to-understand language that has made The Neatest Little Guide to Stock Market Investing such a staple in the investing community, The 3% Signal is sure to become your most trusted guide to investing success.

Download or read book Quantum Fading Strategies for Leveraged and Inverse ETFs written by Andreas Cseh and published by Anchor Academic Publishing. This book was released on 2013-08 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: Suppose the market is going to ‘crash’. What would you do? The most common answer would probably be: Sell what you have and get out of it. However, what if you have nothing to sell? A couple of years ago, simple investors would have said: ‘Stay on the sidelines’. The sophisticated and professionals always had plenty of avenues, such as shorting the stock, buying put options or selling naked calls. The gap was narrowed with the arrival of leveraged and inverse ETFs. These allow even novice investors to short the market in a less risky way. Traditional ETFs track an index or basket in a one-for-one approach, basically they are managed passively. In contrast, leveraged and inverse ETFs are intraday traded, and shouldn’t be confused with more-vanilla ETFs. Leveraged ETFs require active management which involves the borrowing of funds to purchase additional shares (bullish LETFs) or the short-selling (bearish LETFs) and the rebalance of the position on a daily basis. At present, most levered ETFs are either 2X, 3X, -2X, or 3X, and therefore they give investors the possibility to earn two or three times (and loose two or three times) the daily return of a simple long or short position in the index. These levered ETFs have leverage (borrowing) built into their structure, thus eliminating the need for investors to do their own borrowing (margin, futures, swaps etc.) or short-selling. But, the leveraging process is built to achieve an objective quite different from that of the simple and classical ETF.

Download or read book The Ultimate Guide to Trading ETFs written by Don Dion and published by John Wiley & Sons. This book was released on 2010-11-23 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: An essential guide to trading trends with ETFs At any given time, a particular country's market or a particular segment of the market-such as energy or technology-might be booming. The Ultimate Guide To Trading ETFs provides a time-tested strategy for using exchange-traded funds (ETFs) to profit from these trending markets and sectors. By monitoring the performance of ETFs, authors Don Dion and Carolyn Dion show how to capitalize on these fast-moving, ever-changing trends. He then discusses how to stay ahead of the curve by identifying markets and sectors that are gathering momentum and monitoring those markets for signs that the momentum is losing steam. Dion also explains how you can build a balanced portfolio of ETFs and manage your allocations to profit from the shifting trends. Provides advice for both aggressive investors who are willing to utilize leveraged and short market ETFs, as well as more conservative investors who want to limit risk Highlights a wide variety of ETFs currently available to investors Shows how to profit from fast-developing trends across all markets and sectors The world of ETFs has created many options for individual investors, and The Ultimate Guide To Trading ETFs shows you how to make the most of those opportunities.

Download or read book Trading ETFs written by Deron Wagner and published by John Wiley & Sons. This book was released on 2012-01-17 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive catalog of exchange-traded funds and insights into successful trading techniques This Second Edition of the bestselling Trading ETFs offers an updated version of the definitive guide to this vital part of the capital markets. It contains numerous new examples of the techniques that author Deron Wagner uses in selecting the most timely ETFs to trade and underscores the core insights of his trading discipline "trade what you see, not what you think." Written for professionals who are using, or should be using, ETFs as an asset class within their portfolios, as well as the individual investor who wants exposure to wider sectors and geographical regions than those available elsewhere. This revised edition of the classic resource focuses on the pros, cons, and potential pitfalls of trading the latest class of ETFs Includes inversely correlated and leveraged ETFs and the dangers, risks, and benefits associated with each new class of ETF Contains a refresher on the initial concept of ETF selection and new case studies on ideal entry and exit points as well as examples of real trades This thoroughly revised and updated edition offers a "go-to" reference for understanding exchange-traded funds.

Download or read book Getting Investment Leverage in the Markets written by Tom Lydon and published by Pearson Education. This book was released on 2010-03-15 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the eBook version of the printed book. This Element is an excerpt from The ETF Trend Following Playbook: Profiting from Trends in Bull or Bear Markets with Exchange Traded Funds (ISBN: 9780137029013) by Tom Lydon. Available in print and digital formats. Why go “short”–and how to use leveraged ETFs to do it more effectively. During the last several bear markets, you might have been well served by reducing your exposure to equities. A number of investors–perhaps even you–decided to “short” the market instead of exiting entirely. By shorting stocks, investors can potentially make money when the stock loses value. Short selling can help you accomplish several goals.

Download or read book Leveraged Exchange Traded Funds written by Peter Miu and published by Palgrave Macmillan. This book was released on 2016-01-05 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leveraged Exchange-Traded Funds (LETFs) are publicly-traded funds that promise to provide daily returns that are in a multiple (positive or negative) of the returns on an index. To meet that promise, the funds use leverage, which is typically obtained through derivatives such as futures contracts, forward contracts, and total-return swaps. As of the end of 2012, there were over 250 LETFs in North America with total assets of approximately $32.24 billion. While the amount of assets held by these funds is still small, their popularity continues to grow as their trading volume is significantly larger and much more dynamic than traditional, non-leveraged ETFs. This comprehensive guide to LETFs provides high-level practitioners and researchers with a detailed reference tool for navigating the market and making informed investment decisions. Written from a measured analytical perspective, Miu and Charupat use clear and concise explanations of all important aspects of LETFs, focusing on such key elements as structure, pricing, performance, regulations, taxation, and trading strategies. The first two chapters set the stage for the book by identifying exactly what LETFs are and how they are regulated. The following chapters then look to bridge theory with practice to dive deep into the mechanics, portfolio rebalancing techniques, and daily compounding effects that make investing in these funds so lucrative.

Download or read book Investigating Long term Short Pairing Strategies for Leveraged Exchange traded Funds Using Machine Learning Techniques written by Elaheh Nikbakht and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although the literature on leveraged exchange-traded funds (LETFs) concurs with the idea that they are short-term investment tools, recent studies offer some investment strategies for them that are also profitable in the long term. These strategies, however, are typically only tested on a limited number of highly traded LETFs. This study uses different types of LETFs to examine various portfolios with different combinations of bull and bear LETFs, to find the best investment strategy in the long run. It then uses different machine learning techniques to analyze which factors define the best investment strategies, with portfolios being rebalanced on a quarterly and annual basis. The sample of this study consists of 44 pairs of LETFs from 2012 to 2020 that have different underlying assets and leverage levels. The results reveal that short-selling the combination of both bull and bear LETFs does not yield a significant positive return compared to the market, however, the return generated from short-selling a portfolio with only bear ETFs can significantly beat the market, especially when the market is bullish. The quarterly and annual results are consistent and show that short-selling a full bear portfolio is the winning strategy in both of these intervals. Moreover, the results show that as the correlation of LETFs with their underlying index increases, the return of short-selling both bull and bear LETFs decreases. At the same time, an increase in the net asset value of bull LETFs results in an increase in the return of short-selling bull LETFs and a decrease in return of short-selling the bear LETFs.

Download or read book Accumulating Wealth by Combining Exchange Traded Funds ETFs and Options Income written by Nachman Bench and published by Author House. This book was released on 2008-04-22 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt: The central theme of this book is the use of Exchange Traded Funds (ETFs), Index tracking and options writing strategies as a tool to diversify your investments, to reduce portfolio volatility and to achieve an attractive rate of return. Managing Risk is one of the most important elements in the process of accumulating wealth. Options can be used as a tool to control risk. The tremendous increase in the popularity of index investing by individual investors, institutions and money manager, together with the huge number of new exchange traded funds (ETFs) and the large increase in options and derivatives trading volume have created new ways to add income, reduce volatility and improve the management of risk. This book is not an attempt to teach you how to make a “home run” investment. Rather, it is an attempt to show you how the cumulative effect of small incremental gains can help you to “make money and keep it”. This book is written for both individual investors and professional portfolio managers who are risk- averse and are looking to invest a portion of their assets using an ETF equity income strategy to provide additional income and at the same time reduces portfolio volatility. In addition, pension funds and institutional investors who are also looking to enhance portfolio returns and lower volatility of their portfolios and who are willing to forgo some upside potential in order to improve risk-adjusted returns.

Download or read book Beyond Smart Beta written by Gökhan Kula and published by John Wiley & Sons. This book was released on 2017-07-05 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: Delve into ETFs for smarter investing and a weatherproof portfolio Beyond Smart Beta is the investor's complete guide to index investing, with deep analysis, expert clarification and smart strategies for active portfolio management. From the general to the obscure, this book digs into every aspect of Exchange Traded Funds (ETFs) including ETCs and ETNs to break down the jargon and provide accessible guidance on utilising the indices as part of a more productive investment strategy. Succinct explanations of terms and concepts help you better grasp ETP anatomy, mechanics and practices, while examples, charts and graphs provide quick visual reference for total understanding. The expert author team examines the risks and benefits associated with various indexing approaches, sharing critical review of next-generation methods to help you make well-informed investment decisions. ETFs provide a solid foundation within mature and well-researched markets, allowing investors to focus on areas where active management has the potential to reap higher returns. This book shows you how to take full advantage of the growth of this market to strengthen your portfolio for the long term. Assess the current landscape and the anatomy of ETFs/ETPs Understand ETP handling, costs, trading, and investment Evaluate the pros and cons of next-generation indexing approaches Avoid risk while incorporating indices into an active portfolio management strategy Index concepts have evolved from basic, passive investments through Smart Beta, and are evolving into a third generation of products that will quickly become an important element of investor portfolios. Key benefits have propelled ETFs to surpass hedge funds in global capital, and the growth shows no sign of slowing. Beyond Smart Beta provides a primer for investors seeking to understand — and take advantage of — these lucrative new products.

Download or read book Enhanced Indexing Strategies written by Tristan Yates and published by John Wiley & Sons. This book was released on 2008-12-03 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leveraged index investments, including index futures, options, and ETFs, are one of the fastest growing products in finance, as both retail and institutional investors are attracted to their long-term returns and capital efficiency. With Enhanced Indexing Strategies, author Tristan Yates reveals how you can create and build high-performance indexing strategies using derivatives that can potentially generate much higher returns than conventional index investing. In addition, Enhanced Indexing Strategies introduces six innovative long-term indexing strategies using futures and options, each with its own advantages and applications.