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3x ETF Short Update
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04:50:14 pm on June 29, 2009

It’s been awhile since I’ve published a revised list of the most liquid 3x leveraged etf shorts.  These are inverse ETFs that allow you to short a particular segment of the market without having to borrow shares from a broker.  Both Direxion and ProShares now offer these highly leveraged ETFs with ProShares launching their S&P500 short ETF a few days ago.

Here’s the list in order of most liquid:

Financial Bear (FAZ) 268 million shares
Large Cap Bear (BGZ) 10 million shares
Small Cap Bear (TZA) 10 million shares
Energy Bear (ERY) 2 million shares
Emerging Markets Bear (EDZ) 564K shares
Technology Bear (TYP) 312K shares
UltraPro Short S&P500 3x Short (SPXU) 96K shares
30 Yr Treasury Bear (TMV) 66K shares
Mid Cap Bear (MWN) 38K shares
Developed Markets Bear (DPK) 20K shares
10 Yr Treasury Bear (TYO) 6K shares

Does Launch Of 4 New ProShares Leveraged International ETFs Indicate A Top?
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04:51:24 pm on June 5, 2009

The ProShares and Direxion leveraged ETF’s have been extremely popular so it comes as no surprise they continue to launch new leveraged funds.  Yesterday, ProShares added 4 new leveraged international ETFs that seek to capture 2x the daily performance of the underlying benchmarks.  Here are the funds:

  • ProShares Ultra MSCI EAFE (NYSE Arca: EFO)
  • ProShares Ultra MSCI Emerging Markets (NYSE Arca: EET)
  • ProShares Ultra FTSE/Xinhua China 25 (NYSE Arca: XPP)
  • ProShares Ultra MSCI Japan (NYSE Arca: EZJ)
  • Does the launch of these 4 funds indicate a top approaching in international and emerging market ETFs.  Perhaps, but I wouldn’t make large bets on that just yet.  Most markets remains in strong up trends.  I’d expect these ETF’s to be just as popular as the inverse versions were, I’m just wondering why they didn’t launch them in pairs at the same time.  The inverse counterparts of the above ETF’s have been around for nearly two years.  Here are the inverse versions:

    • ProShares UltraShort MSCI EAFE (NYSE Arca: EFU)
    • ProShares UltraShort MSCI Emerging Markets (NYSE Arca: EEV)
    • ProShares UltraShort FTSE/Xinhua China 25 (NYSE Arca: FXP)
    • ProShares Ultra MSCI Japan (NYSE Arca: EWV)
    • What interests me more will be these inverse ETF’s once the markets go into rally correction mode.  They have been slaughtered and once they break their downtrends, should provide big profits.

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