January 6, 2009
Triple Long & Short ETFs Quickly Popular
You can see from the table below that the recently introduced triple long and short ETFs from Direxion already do pretty good volume. Many of the full-time day traders I follow on Twitter (Andy Swan, Brian Shannon, Nick Fenton, Steven Place, etc.) frequently trade the Financials (FAS & FAZ) from Direxion as well as the boring old double-leveraged standbys from ProShares like UYG, SSO, DXO, DIG, etc.
I’ve mentioned to my newsletter subscribers that I don’t think the double-leveraged ETFs (let alone the triple-leveraged) are suitable for “investing” since they’re erratic and don’t track well (they target daily percentage changes), and I refuse to include them in my “core” portfolio, but they’re definitely good day trading vehicles.