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ETF Questions...... 2x, 3x, ETN, etc. ??


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ETF Questions...... 2x, 3x, ETN, etc. ??

  #1 (permalink)
md1933
memphis
 
Posts: 74 since May 2016
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Good Afternoon,
I was just doing some reading on ETFs , and a few things regarding them I wanted to double check on and make sure I understand them correctly

1. on a lot of the Long, Short, 2x and 3x ETFs ........ they had ETN at the end of them

What is ETN exactly ?

2. Some Commodities, have multiple ...... 2x , 3x , Long, Short, and Inverse ETFs to choose from to trade them ( such as Crude Oil, Natural Gas, Gold, Silver, Bonds, Currencies )

How do you decide which say ....... 2x ETF to trade on Gold ?
Just choose the one that has the most ( Total Assets and highest Average Volume ) ?

3. What are the ETFs for the Bonds/Notes ...... mainly the 30 year, 10 year, 5 year and 2 year ?

So if I wanted to mimic as closely as possible the 2 year on the Futures market, which ETF would I need to look at to trade ?

4. Are there any ETFs to mimic both Feeder Cattle and Live Cattle ?

5. What about any ETFs for ..... Heating Oil , Oats, Orange Juice ?

Thanks again for the help ,
much appreciated

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  #3 (permalink)
 TraderSusan 
Chicago, IL/USA
 
Posts: 12 since Nov 2016


ETN is an Exchange Traded Note.


Her is the wikipedia on it.

https://en.wikipedia.org/wiki/Exchange-traded_note

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  #4 (permalink)
 
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 suko 
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>>How do you decide....

tradability and liquidity

Gold: GLD and GDX

Bonds: TLT and TBT

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  #5 (permalink)
md1933
memphis
 
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Suko,
Thank you for the recommended ETFs for both Gold and Bonds

Are they any that have Enough Liquidity and Tradability for other Commodities, such as for.......... Coffee, Cotton, Corn ( the Grains ), Sugar, Feeder Cattle, Heating Oil, Cocoa ?

Thank you again for all of your help

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  #6 (permalink)
 
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 suko 
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Nope.

USO for crude.

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  #7 (permalink)
Rubens
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Suppose an investor purchases a leveraged ETF for $100.00 and it ends the day up 10% at $110.00 and the investor realizes a 2x profit of 20%. The next trading session, the leveraged ETF falls 9.1% from $110.00 to $100.00 and the investor realizes a 2x loss of 18.18%. While this doesn’t sound all that bad on the surface, an 18.2% loss on $120.00 amounts to $21.84, which puts the position at just $98.16. In effect, a loss is realized on what would have been a neutral position

True or ?

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  #8 (permalink)
 
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 suko 
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Leveraged ETFs are trading vehicles.

And the best ones for trading are UVXY and NUGT.

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  #9 (permalink)
Rubens
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Till now, UVXY ETF was a one Way trade

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  #10 (permalink)
 
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 suko 
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I would agree with you. 86% of the time it is a short.

But when VIX gets over 15, it's very good day trading.

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Last Updated on December 5, 2016


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