I just today wrapped up a great ETFs page that I recommend bookmarking. It lists out over 80 different ETFs that are 2x and 3x leveraged on the long side and should prove to be a great resource for all investors.
Now granted the market isn’t the most happening place right now for bulls. Eventually though it will make a comeback and so I am preparing ahead of time (sitting in cash can get kind of boring). The page is broken down into multiple sections:
- Leveraged Long Market Cap ETFs (S&P 500, Dow, etc.)
- Leveraged Long Style ETFs (Russell Midcap, Russell growth, etc.)
- Leveraged Long Sector ETFs (Tech, financials, healthcare, etc.)
- Leveraged Long Commodity ETFs (Gold, Silver)
- Leveraged Long Fixed Income ETFs (Treasuries)
- Leveraged Long International (Europe, China, Emerging Markets, etc.)
For those who are bearish, on my sister blog TraderMike I also have a full listing of inverse ETFs,
ETFs are a great way to trade versus buying a mutual fund because of their liquidity since they trade like a stock, and their low management fees. Most ETFs have management fees ranging from as low as 0.2% to 1.0%. Some can be higher depending on the fund, but overall it is far lower than paying 2 – 4%+ charged by mutual funds. And don’t even get me started on loaded mutual funds…
My only word of caution with investing in leveraged ETFs, 2x and 3x, like the ones featured on this new page would be to understand that they are designed for primarily day trading. These ETFs are designed to replicate performance on a daily basis, so each day it is a fresh slate. Thus, long term as the market moves up and down, many of these funds will slowly lose value and ultimately be forced to reverse split. Here is a good post explaining the matter if you are interested.