Short

FINRA is proposing a new overhaul in how much leverage is granted by brokers to buy leveraged exchange-traded funds. Currently, investors can leverage as much as 12 times the daily return of an index by purchasing a 3x leveraged ETF with already leveraged broker margin. FINRA allows for 25% margin on long ETFs and 30% [...]

ProShares has announced an immediate launch of a new reverse Treasury ETF designed to track the inverse return of long dated Treasuries. The new fund launches just before the Fed halts its Treasury purchase program, which many analysts believe will send the price of Treasuries lower. The new fund, named ProShares Short 20+ Year Treasury [...]

Exchange-traded funds have been some of the most popularly traded securities used by investment firms engaging in flash trading, a process that may be soon banned by the SEC. However, a market-maker’s involvement in exchange-traded funds extends far beyond simple flash trading orders, as they are the vehicle that allows new ETFs to gain momentum [...]

A new study by TrimTabs Investment Research has outlined the first link between brokerage bans of exchange-traded funds and diminished ETF assets. The report found that nearly all of June’s record inflows were erased in July after brokerage firms and regulatory authorities issued warnings about the utilization of leverage. Leveraged exchange-traded funds saw outflows of [...]

After the first 130/30 fund launch by ProShares, Direxion has filed with the SEC to create its own 130/30 ETF. The strategy leverages the fund’s assets by selling stocks short and reinvesting the proceeds to long more shares; the result is a portfolio that has an exposure 1.6 times greater than the total amount invested. [...]

PIMCO isn’t looking for a slice of the exchange-traded fund industry; instead, it seeks to control the entire fixed income ETF pie. The company has unveiled more information about four new actively-managed bond funds it intends to launch in the near future. To complement its long term debt issues, PIMCO will also launch two actively [...]

Edward Jones has completely ceased its sales of leveraged ETFs, taking sides with FINRA in the latest battle over the dangers of leveraged exchange-traded funds. Edward Jones goes one step further than merely mirroring the words of FINRA; the firm released a report identifying the various problems it encountered with leveraged products. Above all else, [...]

While many REITs lost their luster during the real estate meltdown, Direxion hopes to capitalize upon the changing real estate market through its new bull and bear 3x leveraged REIT ETFs. Released on Thursday, the two new leveraged REIT ETFs will provide tactical investors with an increased exposure to American real estate investment trusts. According [...]

ProShares will launch the first 130/30 ETF on July 14, hoping to attract investors who could ordinarily only invest in 130/30 mutual funds. The ProShares Credit Suisse 130/30 will track a 130/30 Large-Cap Index first launched in 2008, according to Pensions and Investments. The 130/30 system’s goal is to leverage the invested amounts while deriving [...]

At the beginning of the financial crisis, savvy investors made Treasuries their investment mainstay, but the instrument lost steam during the market’s 2009 strengthening. Months after the markets have calmed and pushed off their lows, investors are moving back to Treasuries as uncertainty builds. A recent ten year auction provided the best results since 1995, [...]