I’m Keith DeGreen and this is your Investors Minute.
This week we’ve discussed leveraged ETFs that rise and fall two or three times as rapidly as an underlying index; and we’ve discussed inverse ETFs that move in the opposite direction of an index.
As you might expect, there are inverse ETFs that are also leveraged.
For example, if you strongly believe that the value of long-term U.S. government bonds will decline, you might consider the ETF, TBT. It rises and falls twice as rapidly – and in the opposite direction — as the underlying U.S. Government 20-Year Bond Index.
Meanwhile, if you really want a thrill this Halloween, and if you think that the U.S. small-cap index is about to tank, you might consider an ETF with the ticker TZA. It will not only move inversely to the Small Cap Index, but at three times the speed!
Now that’s scary!
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