Leveraged ETFs are convenient, but are they more efficient and
effective than traditional margin leverage? In this report we
compare performance of both in up and down markets and consider
qualitative differences. Overall, we find that leveraged ETFs are
still the preferred method for making big bets on market
direction.
Traditionally leverage is obtained by borrowing money from a
broker at margin loan rates and then either buying an ETF or
selling it short. Alternatively, one can buy so-called leveraged
ETFs which contain all leverage and margin costs. They come in
long and short flavors and typically ratchet leverage up by a
factor of two or three.
First let us compare how the two strategies handle the
ubiquitous S&P 500 in bull and bear markets. On the one hand
we buy SPDR 500 (NYSEArca:SPY), the giant S&P 500 ETF, once
with cash on hand and again on margin for double exposure. On the
other hand we buy Rydex 2x S&P 500 (NYSEArca:RSU), a
leveraged ETF targeting double daily returns (discussed later).
RSU wins handily in the bear market of 2008 and just slightly in
the March 2009 bull run:
|
|
Bear market: 2008 |
Bull market: March 9-31 |
| SPY return |
- 34.6% |
17.6% |
| SPY 2X |
-69.2% |
35.2% |
| less 5% margin |
5.0% |
0.3% |
| net return |
-74.2% |
34.9% |
| vs. RSU |
-65.2% |
36.5% |
|
|
Bear market: 2008 |
Bull market: March 9-31 |
| SPY return |
- 34.6% |
17.6% |
| SPY 2X |
-69.2% |
35.2% |
| less 5% margin |
5.0% |
0.3% |
| net return |
-74.2% |
34.9% |
| vs. RSU |
-65.2% |
36.5% |
|
|
Bear market: 2008 |
Bull market: March 9-31 |
|
Bear market: 2008 |
Bull market: March 9-31 |
| SPY return |
- 34.6% |
17.6% |
SPY return |
- 34.6% |
17.6% |
| SPY 2X |
-69.2% |
35.2% |
SPY 2X |
-69.2% |
35.2% |
| less 5% margin |
5.0% |
0.3% |
less 5% margin |
5.0% |
0.3% |
| net return |
-74.2% |
34.9% |
net return |
-74.2% |
34.9% |
| vs. RSU |
-65.2% |
36.5% |
vs. RSU |
-65.2% |
36.5% |
When we consider a shorting scenario, results are mixed. Here
we compare Rydex 2x Inverse S&P 500 (NYSEArca:RSW) which
targets the inverse of double daily S&P 500 returns against a
double short position where cash on hand is posted as collateral
to short once and another short position is made with a margin
loan. RSW trails by 8% during the 2008 bear market and wins in
the 2009 spring bull market by 4%.
|
|
Bear market: 2008 |
Bull market: March 9-31 |
| SPY return |
34.6% |
-17.6% |
| SPY 2X |
69.2% |
-35.2% |
| less 5% margin |
5.0% |
0.3% |
| net return |
64.2% |
-35.1% |
| vs. RSW |
56.3% |
-31.5% |
|
|
Bear market: 2008 |
Bull market: March 9-31 |
| SPY return |
34.6% |
-17.6% |
| SPY 2X |
69.2% |
-35.2% |
| less 5% margin |
5.0% |
0.3% |
| net return |
64.2% |
-35.1% |
| vs. RSW |
56.3% |
-31.5% |
|
|
Bear market: 2008 |
Bull market: March 9-31 |
|
Bear market: 2008 |
Bull market: March 9-31 |
| SPY return |
34.6% |
-17.6% |
SPY return |
34.6% |
-17.6% |
| SPY 2X |
69.2% |
-35.2% |
SPY 2X |
69.2% |
-35.2% |
| less 5% margin |
5.0% |
0.3% |
less 5% margin |
5.0% |
0.3% |
| net return |
64.2% |
-35.1% |
net return |
64.2% |
-35.1% |
| vs. RSW |
56.3% |
-31.5% |
vs. RSW |
56.3% |
-31.5% |
Now we turn to the closely watched sector of financials. Here
we compare ProShares Ultra Financial (
UYG
), which tracks double daily returns of the Dow Jones Financial
Index, against going long twice on iShares Dow Jones US Financial
Sector ETF (NYSEArca:IYF), which tracks the same index without
leverage. UYG wins handily during the 2008 bear market and again
less dramatically during the Spring 2009 bull market:
|
|
Bear market: 2008 |
Bull market: March 9-31 |
| IYF return |
-47.7% |
35.6% |
| IYF 2X |
-95.3% |
71.2% |
| less 5% margin |
5.0% |
.3% |
| net return |
-100.3% |
69.9% |
| vs. UYG |
-83.3% |
74.0% |
|
|
Bear market: 2008 |
Bull market: March 9-31 |
| IYF return |
-47.7% |
35.6% |
| IYF 2X |
-95.3% |
71.2% |
| less 5% margin |
5.0% |
.3% |
| net return |
-100.3% |
69.9% |
| vs. UYG |
-83.3% |
74.0% |
|
|
Bear market: 2008 |
Bull market: March 9-31 |
|
Bear market: 2008 |
Bull market: March 9-31 |
| IYF return |
-47.7% |
35.6% |
IYF return |
-47.7% |
35.6% |
| IYF 2X |
-95.3% |
71.2% |
IYF 2X |
-95.3% |
71.2% |
| less 5% margin |
5.0% |
.3% |
less 5% margin |
5.0% |
.3% |
| net return |
-100.3% |
69.9% |
net return |
-100.3% |
69.9% |
| vs. UYG |
-83.3% |
74.0% |
vs. UYG |
-83.3% |
74.0% |
Despite this apparent edge in past returns, we caution that
IYF has all the makings of an ETF which arbitrageurs might
exploit. First, IYF is relatively large at $400 Million in
assets, more than twice the size of RSU. Second, the financial
sector futures market in which IYF operates is a small fraction
of the S&P 500 futures market, which makes up more than
2/3rds of all stock futures trading. IYF has to roll over a huge
number of contracts at the end of every day with few
counterparties, and arbitrage traders know it is coming. In the
right environment they can step in front of IYF with little risk
and push up prices of futures it will need to buy and push down
prices of futures it will need to sell. The arbitrageurs can
literally steal the ETF's profits.
This is more than conjecture. In 2009 hedge fund traders have
openly boasted of doing these kinds of moves to leveraged sector
ETFs. Similarly, well-documented episodes have plagued USO, the
crude oil tracking stock. For any sizable leveraged ETF operating
in a relatively small market, arbitrageurs are likely to reduce
profits.
These quantitative results are admittedly anecdotal, but they
match a pattern we have seen in two previous reports. Every time
we have examined leveraged ETFs, they have shown to be far from
perfect, but on average they have beaten margin leverage
head-to-head in returns. We have also found a fair degree of
random variation. Margin can win solidly at times.
A note on key assumptions: low loan costs are critical for the
success of traditional margin leverage. Here we used a rate (5%)
charged by ETrade for sums of $250,000-$1,000,000, but rates
change all the time and depend on amount borrowed and the broker
providing them. These are historically low rates so it is
difficult to argue that waiting for better rates will help margin
leverage.
Any edge which leveraged ETFs might have in bear markets is
crucial, and they certainly demonstrated an edge in this recent
bear market for the ages. One of the perverse laws of investment
arithmetic is that a loss of 50% has to be made up with a gain of
100%. This is why 2008 was so devastating to investors and why
Spring of 2009 brought only modest consolation. The extreme
example of this arithmetic can be seen in the last comparison
above involving financials ETFs UYG and IYF (on margin). Sadly,
margin investors of IYF were completely wiped out during 2008 and
would have had to post additional collateral to be able to enjoy
the benefits of the 2009 Spring rebound.
So far we have compared ETF vs. margin strategies in terms of
quantitative returns, but there are also various qualitative
differences to consider. Some are obvious, others more
subtle.
An obvious difference mentioned above is that leveraged ETFs
generally follow (as best they can) daily returns of an index,
not overall returns for a period. Compounding of these daily
returns should amplify leverage. Also, daily returns often mean
just that. Price movements which occur after trading hours are
not counted in daily returns as they are with standard index
returns. This would tend to depress leverage. For instance,
consider a week of trading with the following daily and weekly
returns for a hypothetical index:
The benchmark index went from 100 to 109 in five days of
trading. But an ETF tracking daily trading ended at about 108,
one point less in only 5 days. How did that happen? Sudden
movements after trading hours which followed the momentum of the
market but were not captured in daily returns.
Other subtle differences exist. Leveraged ETFs tracking the
inverse of an index can never lose more than their original
principal whereas equivalent margin short positions expose the
investor to theoretically unlimited losses. And margin
requirements mean that collateral impacts other parts of an
investor's portfolio, whereas leveraged ETFs require no
collateral and do not impact the rest of the portfolio. A
brokerage firm which may require $1.20 collateral for $1 in
margin of a broad index ETF may require as much as $4 to $5 of
collateral for a riskier ETF.
On the other hand, leveraged ETFs have some exposure to
counterparty risk which tends to come out in times of financial
crisis like now. Leveraged ETFs may invest directly with stocks,
but more commonly they will purchase index futures or swaps,
which depend on the ability of a counterparty to deliver on their
promises. If the ETF fund manager is careful to ensure that the
counterparty has posted adequate collateral (such as through a
brokerage firm) then there is little to worry about, but if there
were any time to have concerns about systemic counterparty
failure, it would be in the current financial crisis.
We would summarize these qualitative differences in a word:
simplicity. Traditional leverage, from the investor's point of
view, is complicated, messy, and inconvenient. A leveraged ETF,
although internally complicated, is simplicity itself from the
point of view of an investor. It involves one purchase of a
liquid security and no other maintenance or oversight other than
deciding when to unwind, with one sell order. On a cautionary
note, this convenience means that more investors are likely to
consider leveraged ETFs than margin. Some probably shouldn't. All
of these products are volatile and strictly for alert,
experienced traders.
Leveraged ETFs may not replicate traditional margin leverage,
but they deliver an approximation with strong comparitive
performance in a far simpler format. They are clearly a step
ahead of traditional margin leverage.
There are nearly one hundred leveraged ETFs, including:
- Direxion Energy Bear 3x Shares ETF (NYSEArca:ERY), annual
fees: 0.95%
- Direxion Energy Bull 3x Shares ETF (NYSEArca:ERX), annual
fees: 0.94%
- Direxion Financial Bear 3x Shares ETF (NYSEArca:FAZ),
annual fees: 0.94%
- Direxion Financial Bull 3x Shares ETF (NYSEArca:FAS),
annual fees: 0.94%
- Direxion Large Cap Bear 3x Shares ETF (NYSEArca:BGZ),
annual fees: 0.95%
- Direxion Large Cap Bull 3x Shares ETF (NYSEArca:BGU),
annual fees: 0.95%
- Direxion Mid Cap Bear 3x Shares ETF (NYSEArca:MWN),
annual fees: 0.95%
- Direxion Mid Cap Bull 3x Shares ETF (NYSEArca:MWJ),
annual fees: 0.95%
- Direxion Small Cap Bear 3x Shares ETF (NYSEArca:TZA),
annual fees: 0.95%
- Direxion Small Cap Bull 3x Shares ETF (NYSEArca:TNA),
annual fees: 0.95%
- ProShares Short Dow30 ETF (NYSEArca:DOG), annual fees:
0.95%
- ProShares Short MidCap400 ETF (NYSEArca:MYY), annual
fees: 0.95%
- ProShares Short MSCI EAFE ETF (
EFZ
), annual fees: 0.95%
- ProShares Short MSCI Emerging Markets ETF (
EUM
), annual fees: 0.95%
- ProShares Short QQQ ETF (
PSQ
), annual fees: 0.95%
- ProShares Short Russell2000 ETF (NYSEArca:RWM), annual
fees: 0.95%
- ProShares Short S&P 500 ETF (
SH
), annual fees: 0.95%
- ProShares Short SmallCap600 ETF (
SBB
), annual fees: 0.95%
- ProShares Ultra Basic Materials ETF (
UYM
), annual fees: 0.95%
- ProShares Ultra Consumer Goods ETF (
UGE
), annual fees: 0.95%
- ProShares Ultra Consumer Services ETF (
UCC
), annual fees: 0.95%
- ProShares Ultra DJ AIG Commodity ETF (NYSEArca:UCD),
annual fees: 0.95%
- ProShares Ultra Dow30 ETF (NYSEArca:DDM), annual fees:
0.95%
- ProShares Ultra Euro ETF (NYSEArca:ULE), annual fees:
0.95%
- ProShares Ultra Financials ETF (
UYG
), annual fees: 0.95%
- ProShares Ultra Gold ETF (NYSEArca:UGL), annual fees:
0.95%
- ProShares Ultra Health Care ETF (
RXL
), annual fees: 0.95%
- ProShares Ultra Industrials ETF (
UXI
), annual fees: 0.95%
- ProShares Ultra MidCap400 ETF (
MVV
), annual fees: 0.95%
- ProShares Ultra Oil & Gas ETF (
DIG
), annual fees: 0.95%
- ProShares Ultra QQQ ETF (
QLD
), annual fees: 0.95%
- ProShares Ultra Real Estate ETF (
URE
), annual fees: 0.95%
- ProShares Ultra Russell MidCap Growth ETF (
UKW
), annual fees: 0.95%
- ProShares Ultra Russell MidCap Value ETF (
UVU
), annual fees: 0.95%
- ProShares Ultra Russell1000 Growth ETF (NYSEArca:UKF),
annual fees: 0.95%
- ProShares Ultra Russell1000 Value ETF (NYSEArca:UVG),
annual fees: 0.95%
- ProShares Ultra Russell2000 ETF (NYSEArca:UWM), annual
fees: 0.95%
- ProShares Ultra Russell2000 Growth ETF (NYSEArca:UKK),
annual fees: 0.95%
- ProShares Ultra Russell2000 Value ETF (
UVT
), annual fees: 0.95%
- ProShares Ultra S&P 500 ETF (
SSO
), annual fees: 0.95%
- ProShares Ultra Semiconductors ETF (
USD
), annual fees: 0.95%
- ProShares Ultra Silver ETF (
AGQ
), annual fees: 0.95%
- ProShares Ultra SmallCap600 ETF (
SAA
), annual fees: 0.95%
- ProShares Ultra Technology ETF (
ROM
), annual fees: 0.95%
- ProShares Ultra Telecommunications ETF (
LTL
), annual fees: 0.95%
- ProShares Ultra Utilities ETF (
UPW
), annual fees: 0.95%
- ProShares Ultra Yen ETF (NYSEArca:YCL), annual fees:
0.95%
- ProShares UltraShort Basic Materials ETF (
SMN
), annual fees: 0.95%
- ProShares UltraShort Consumer Goods ETF (
SZK
), annual fees: 0.95%
- ProShares UltraShort Consumer Services ETF
(NYSEArca:SCC), annual fees: 0.95%
- ProShares UltraShort DJ AIG Crude Oil ETF (NYSEArca:SCO),
annual fees: 0.95%
- ProShares UltraShort DJ30 ETF (
DXD
), annual fees: 0.95%
- ProShares UltraShort Euro ETF (NYSEArca:EUO), annual
fees: 0.95%
- ProShares UltraShort Financials ETF (
SKF
), annual fees: 0.95%
- ProShares UltraShort FTSE/Xinhua China 25 ETF (
FXP
), annual fees: 0.95%
- ProShares UltraShort Gold ETF (NYSEArca:GLL), annual
fees: 0.95%
- ProShares UltraShort Health Care ETF (
RXD
), annual fees: 0.95%
- ProShares UltraShort Industrials ETF (
SIJ
), annual fees: 0.95%
- ProShares UltraShort Lehman 20 Year Treasury ETF (
TBT
), annual fees: 0.95%
- ProShares UltraShort Lehman 7-10 Year Treasury ETF (
PST
), annual fees: 0.95%
- ProShares UltraShort MidCap400 ETF (NYSEArca:MZZ), annual
fees: 0.95%
- ProShares UltraShort MSCI EAFE ETF (
EFU
), annual fees: 0.95%
- ProShares UltraShort MSCI Emerging Markets ETF (
EEV
), annual fees: 0.95%
- ProShares UltraShort MSCI Japan ETF (
EWV
), annual fees: 0.95%
- ProShares UltraShort Oil & Gas ETF (
DUG
), annual fees: 0.95%
- ProShares UltraShort QQQ ETF (
QID
), annual fees: 0.95%
- ProShares UltraShort Real Estate ETF (
SRS
), annual fees: 0.95%
- ProShares UltraShort Russell MidCap Growth ETF (
SDK
), annual fees: 0.95%
- ProShares UltraShort Russell MidCap Value ETF
(NYSEArca:SJL), annual fees: 0.95%
- ProShares UltraShort Russell1000 Growth ETF (
SFK
), annual fees: 0.95%
- ProShares UltraShort Russell1000 Value ETF (
SJF
), annual fees: 0.95%
- ProShares UltraShort Russell2000 ETF (NYSEArca:TWM),
annual fees: 0.95%
- ProShares UltraShort Russell2000 Growth ETF
(NYSEArca:SKK), annual fees: 0.95%
- ProShares UltraShort Russell2000 Value ETF
(NYSEArca:SJH), annual fees: 0.95%
- ProShares UltraShort S&P 500 ETF (NYSEArca:SDS),
annual fees: 0.95%
- ProShares UltraShort Semiconductors ETF (NYSEArca:SSG),
annual fees: 0.95%
- ProShares UltraShort Silver ETF (NYSEArca:ZSL), annual
fees: 0.95%
- ProShares UltraShort SmallCap600 ETF (NYSEArca:SDD),
annual fees: 0.95%
- ProShares UltraShort Technology ETF (NYSEArca:REW),
annual fees: 0.95%
- ProShares UltraShort Telecommunications ETF
(NYSEArca:TLL), annual fees: 0.95%
- ProShares UltraShort Utilities ETF (NYSEArca:SDP), annual
fees: 0.95%
- ProShares UltraShort Yen ETF (NYSEArca:YCS), annual fees:
0.95%
- Rydex 2x S&P 500 ETF (AMEX:RSU ), annual fees:
0.7%
- Rydex Inverse 2x S&P 500 ETF (AMEX:RSW ), annual
fees: 0.7%
- Rydex 2x S&P MidCap 400 ETF (AMEX:RMM ), annual fees:
0.7%
- Rydex Inverse 2x S&P MidCap 400 ETF (AMEX:RMS ),
annual fees: 0.7%
- Rydex 2x Russell 2000 ETF (AMEX:RRY ), annual fees:
0.7%
- Rydex Inverse 2x Russell 2000 ETF (AMEX:RRZ ), annual
fees: 0.7%
- Rydex Inverse 2x S&P Select Sector Energy ETF
(AMEX:REC ), annual fees: 0.7%
- Rydex Inverse 2x S&P Select Sector Financial ETF
(AMEX:RFN ), annual fees: 0.7%
- Rydex Inverse 2x S&P Select Sector Technology ETF
(AMEX:RTW ), annual fees: 0.7%
- Rydex Inverse 2x S&P Select Sector Health Care ETF
(AMEX:RHO ), annual fees: 0.7%
- Rydex 2x S&P Select Sector Energy ETF (AMEX:REA ),
annual fees: 0.7%
- Rydex 2x S&P Select Sector Financial ETF (AMEX:RFL ),
annual fees: 0.7%
- Rydex 2x S&P Select Sector Technology ETF (AMEX:RTG
), annual fees: 0.7%
- Rydex 2x S&P Select Sector Health Care ETF (AMEX:RHM
), annual fees: 0.7%
- Direxion Energy Bear 3x Shares ETF (NYSEArca:ERY), annual
fees: 0.95%
- Direxion Energy Bull 3x Shares ETF (NYSEArca:ERX), annual
fees: 0.94%
- Direxion Financial Bear 3x Shares ETF (NYSEArca:FAZ),
annual fees: 0.94%
- Direxion Financial Bull 3x Shares ETF (NYSEArca:FAS),
annual fees: 0.94%
- Direxion Large Cap Bear 3x Shares ETF (NYSEArca:BGZ),
annual fees: 0.95%
- Direxion Large Cap Bull 3x Shares ETF (NYSEArca:BGU),
annual fees: 0.95%
- Direxion Mid Cap Bear 3x Shares ETF (NYSEArca:MWN), annual
fees: 0.95%
- Direxion Mid Cap Bull 3x Shares ETF (NYSEArca:MWJ), annual
fees: 0.95%
- Direxion Small Cap Bear 3x Shares ETF (NYSEArca:TZA),
annual fees: 0.95%
- Direxion Small Cap Bull 3x Shares ETF (NYSEArca:TNA),
annual fees: 0.95%
- ProShares Short Dow30 ETF (NYSEArca:DOG), annual fees:
0.95%
- ProShares Short MidCap400 ETF (NYSEArca:MYY), annual fees:
0.95%
- ProShares Short MSCI EAFE ETF (
EFZ
), annual fees: 0.95%
- ProShares Short MSCI Emerging Markets ETF (
EUM
), annual fees: 0.95%
- ProShares Short QQQ ETF (
PSQ
), annual fees: 0.95%
- ProShares Short Russell2000 ETF (NYSEArca:RWM), annual
fees: 0.95%
- ProShares Short S&P 500 ETF (
SH
), annual fees: 0.95%
- ProShares Short SmallCap600 ETF (
SBB
), annual fees: 0.95%
- ProShares Ultra Basic Materials ETF (
UYM
), annual fees: 0.95%
- ProShares Ultra Consumer Goods ETF (
UGE
), annual fees: 0.95%
- ProShares Ultra Consumer Services ETF (
UCC
), annual fees: 0.95%
- ProShares Ultra DJ AIG Commodity ETF (NYSEArca:UCD), annual
fees: 0.95%
- ProShares Ultra Dow30 ETF (NYSEArca:DDM), annual fees:
0.95%
- ProShares Ultra Euro ETF (NYSEArca:ULE), annual fees:
0.95%
- ProShares Ultra Financials ETF (
UYG
), annual fees: 0.95%
- ProShares Ultra Gold ETF (NYSEArca:UGL), annual fees:
0.95%
- ProShares Ultra Health Care ETF (
RXL
), annual fees: 0.95%
- ProShares Ultra Industrials ETF (
UXI
), annual fees: 0.95%
- ProShares Ultra MidCap400 ETF (
MVV
), annual fees: 0.95%
- ProShares Ultra Oil & Gas ETF (
DIG
), annual fees: 0.95%
- ProShares Ultra QQQ ETF (
QLD
), annual fees: 0.95%
- ProShares Ultra Real Estate ETF (
URE
), annual fees: 0.95%
- ProShares Ultra Russell MidCap Growth ETF (
UKW
), annual fees: 0.95%
- ProShares Ultra Russell MidCap Value ETF (
UVU
), annual fees: 0.95%
- ProShares Ultra Russell1000 Growth ETF (NYSEArca:UKF),
annual fees: 0.95%
- ProShares Ultra Russell1000 Value ETF (NYSEArca:UVG),
annual fees: 0.95%
- ProShares Ultra Russell2000 ETF (NYSEArca:UWM), annual
fees: 0.95%
- ProShares Ultra Russell2000 Growth ETF (NYSEArca:UKK),
annual fees: 0.95%
- ProShares Ultra Russell2000 Value ETF (
UVT
), annual fees: 0.95%
- ProShares Ultra S&P 500 ETF (
SSO
), annual fees: 0.95%
- ProShares Ultra Semiconductors ETF (
USD
), annual fees: 0.95%
- ProShares Ultra Silver ETF (
AGQ
), annual fees: 0.95%
- ProShares Ultra SmallCap600 ETF (
SAA
), annual fees: 0.95%
- ProShares Ultra Technology ETF (
ROM
), annual fees: 0.95%
- ProShares Ultra Telecommunications ETF (
LTL
), annual fees: 0.95%
- ProShares Ultra Utilities ETF (
UPW
), annual fees: 0.95%
- ProShares Ultra Yen ETF (NYSEArca:YCL), annual fees:
0.95%
- ProShares UltraShort Basic Materials ETF (
SMN
), annual fees: 0.95%
- ProShares UltraShort Consumer Goods ETF (
SZK
), annual fees: 0.95%
- ProShares UltraShort Consumer Services ETF (NYSEArca:SCC),
annual fees: 0.95%
- ProShares UltraShort DJ AIG Crude Oil ETF (NYSEArca:SCO),
annual fees: 0.95%
- ProShares UltraShort DJ30 ETF (
DXD
), annual fees: 0.95%
- ProShares UltraShort Euro ETF (NYSEArca:EUO), annual fees:
0.95%
- ProShares UltraShort Financials ETF (
SKF
), annual fees: 0.95%
- ProShares UltraShort FTSE/Xinhua China 25 ETF (
FXP
), annual fees: 0.95%
- ProShares UltraShort Gold ETF (NYSEArca:GLL), annual fees:
0.95%
- ProShares UltraShort Health Care ETF (
RXD
), annual fees: 0.95%
- ProShares UltraShort Industrials ETF (
SIJ
), annual fees: 0.95%
- ProShares UltraShort Lehman 20 Year Treasury ETF (
TBT
), annual fees: 0.95%
- ProShares UltraShort Lehman 7-10 Year Treasury ETF (
PST
), annual fees: 0.95%
- ProShares UltraShort MidCap400 ETF (NYSEArca:MZZ), annual
fees: 0.95%
- ProShares UltraShort MSCI EAFE ETF (
EFU
), annual fees: 0.95%
- ProShares UltraShort MSCI Emerging Markets ETF (
EEV
), annual fees: 0.95%
- ProShares UltraShort MSCI Japan ETF (
EWV
), annual fees: 0.95%
- ProShares UltraShort Oil & Gas ETF (
DUG
), annual fees: 0.95%
- ProShares UltraShort QQQ ETF (
QID
), annual fees: 0.95%
- ProShares UltraShort Real Estate ETF (
SRS
), annual fees: 0.95%
- ProShares UltraShort Russell MidCap Growth ETF (
SDK
), annual fees: 0.95%
- ProShares UltraShort Russell MidCap Value ETF
(NYSEArca:SJL), annual fees: 0.95%
- ProShares UltraShort Russell1000 Growth ETF (
SFK
), annual fees: 0.95%
- ProShares UltraShort Russell1000 Value ETF (
SJF
), annual fees: 0.95%
- ProShares UltraShort Russell2000 ETF (NYSEArca:TWM), annual
fees: 0.95%
- ProShares UltraShort Russell2000 Growth ETF (NYSEArca:SKK),
annual fees: 0.95%
- ProShares UltraShort Russell2000 Value ETF (NYSEArca:SJH),
annual fees: 0.95%
- ProShares UltraShort S&P 500 ETF (NYSEArca:SDS), annual
fees: 0.95%
- ProShares UltraShort Semiconductors ETF (NYSEArca:SSG),
annual fees: 0.95%
- ProShares UltraShort Silver ETF (NYSEArca:ZSL), annual
fees: 0.95%
- ProShares UltraShort SmallCap600 ETF (NYSEArca:SDD), annual
fees: 0.95%
- ProShares UltraShort Technology ETF (NYSEArca:REW), annual
fees: 0.95%
- ProShares UltraShort Telecommunications ETF (NYSEArca:TLL),
annual fees: 0.95%
- ProShares UltraShort Utilities ETF (NYSEArca:SDP), annual
fees: 0.95%
- ProShares UltraShort Yen ETF (NYSEArca:YCS), annual fees:
0.95%
- Rydex 2x S&P 500 ETF (AMEX:RSU ), annual fees:
0.7%
- Rydex Inverse 2x S&P 500 ETF (AMEX:RSW ), annual fees:
0.7%
- Rydex 2x S&P MidCap 400 ETF (AMEX:RMM ), annual fees:
0.7%
- Rydex Inverse 2x S&P MidCap 400 ETF (AMEX:RMS ), annual
fees: 0.7%
- Rydex 2x Russell 2000 ETF (AMEX:RRY ), annual fees:
0.7%
- Rydex Inverse 2x Russell 2000 ETF (AMEX:RRZ ), annual fees:
0.7%
- Rydex Inverse 2x S&P Select Sector Energy ETF (AMEX:REC
), annual fees: 0.7%
- Rydex Inverse 2x S&P Select Sector Financial ETF
(AMEX:RFN ), annual fees: 0.7%
- Rydex Inverse 2x S&P Select Sector Technology ETF
(AMEX:RTW ), annual fees: 0.7%
- Rydex Inverse 2x S&P Select Sector Health Care ETF
(AMEX:RHO ), annual fees: 0.7%
- Rydex 2x S&P Select Sector Energy ETF (AMEX:REA ),
annual fees: 0.7%
- Rydex 2x S&P Select Sector Financial ETF (AMEX:RFL ),
annual fees: 0.7%
- Rydex 2x S&P Select Sector Technology ETF (AMEX:RTG ),
annual fees: 0.7%
- Rydex 2x S&P Select Sector Health Care ETF (AMEX:RHM ),
annual fees: 0.7%
Direxion Energy Bear 3x Shares ETF (NYSEArca:ERY), annual
fees: 0.95%
Direxion Energy Bull 3x Shares ETF (NYSEArca:ERX), annual
fees: 0.94%
Direxion Financial Bear 3x Shares ETF (NYSEArca:FAZ), annual
fees: 0.94%
Direxion Financial Bull 3x Shares ETF (NYSEArca:FAS), annual
fees: 0.94%
Direxion Large Cap Bear 3x Shares ETF (NYSEArca:BGZ), annual
fees: 0.95%
Direxion Large Cap Bull 3x Shares ETF (NYSEArca:BGU), annual
fees: 0.95%
Direxion Mid Cap Bear 3x Shares ETF (NYSEArca:MWN), annual
fees: 0.95%
Direxion Mid Cap Bull 3x Shares ETF (NYSEArca:MWJ), annual
fees: 0.95%
Direxion Small Cap Bear 3x Shares ETF (NYSEArca:TZA), annual
fees: 0.95%
Direxion Small Cap Bull 3x Shares ETF (NYSEArca:TNA), annual
fees: 0.95%
ProShares Short Dow30 ETF (NYSEArca:DOG), annual fees:
0.95%
ProShares Short MidCap400 ETF (NYSEArca:MYY), annual fees:
0.95%
ProShares Short MSCI EAFE ETF (
EFZ
), annual fees: 0.95%
ProShares Short MSCI Emerging Markets ETF (
EUM
), annual fees: 0.95%
ProShares Short QQQ ETF (
PSQ
), annual fees: 0.95%
ProShares Short Russell2000 ETF (NYSEArca:RWM), annual fees:
0.95%
ProShares Short S&P 500 ETF (
SH
), annual fees: 0.95%
ProShares Short SmallCap600 ETF (
SBB
), annual fees: 0.95%
ProShares Ultra Basic Materials ETF (
UYM
), annual fees: 0.95%
ProShares Ultra Consumer Goods ETF (
UGE
), annual fees: 0.95%
ProShares Ultra Consumer Services ETF (
UCC
), annual fees: 0.95%
ProShares Ultra DJ AIG Commodity ETF (NYSEArca:UCD), annual
fees: 0.95%
ProShares Ultra Dow30 ETF (NYSEArca:DDM), annual fees:
0.95%
ProShares Ultra Euro ETF (NYSEArca:ULE), annual fees:
0.95%
ProShares Ultra Financials ETF (
UYG
), annual fees: 0.95%
ProShares Ultra Gold ETF (NYSEArca:UGL), annual fees:
0.95%
ProShares Ultra Health Care ETF (
RXL
), annual fees: 0.95%
ProShares Ultra Industrials ETF (
UXI
), annual fees: 0.95%
ProShares Ultra MidCap400 ETF (
MVV
), annual fees: 0.95%
ProShares Ultra Oil & Gas ETF (
DIG
), annual fees: 0.95%
ProShares Ultra QQQ ETF (
QLD
), annual fees: 0.95%
ProShares Ultra Real Estate ETF (
URE
), annual fees: 0.95%
ProShares Ultra Russell MidCap Growth ETF (
UKW
), annual fees: 0.95%
ProShares Ultra Russell MidCap Value ETF (
UVU
), annual fees: 0.95%
ProShares Ultra Russell1000 Growth ETF (NYSEArca:UKF), annual
fees: 0.95%
ProShares Ultra Russell1000 Value ETF (NYSEArca:UVG), annual
fees: 0.95%
ProShares Ultra Russell2000 ETF (NYSEArca:UWM), annual fees:
0.95%
ProShares Ultra Russell2000 Growth ETF (NYSEArca:UKK), annual
fees: 0.95%
ProShares Ultra Russell2000 Value ETF (
UVT
), annual fees: 0.95%
ProShares Ultra S&P 500 ETF (
SSO
), annual fees: 0.95%
ProShares Ultra Semiconductors ETF (
USD
), annual fees: 0.95%
ProShares Ultra Silver ETF (
AGQ
), annual fees: 0.95%
ProShares Ultra SmallCap600 ETF (
SAA
), annual fees: 0.95%
ProShares Ultra Technology ETF (
ROM
), annual fees: 0.95%
ProShares Ultra Telecommunications ETF (
LTL
), annual fees: 0.95%
ProShares Ultra Utilities ETF (
UPW
), annual fees: 0.95%
ProShares Ultra Yen ETF (NYSEArca:YCL), annual fees:
0.95%
ProShares UltraShort Basic Materials ETF (
SMN
), annual fees: 0.95%
ProShares UltraShort Consumer Goods ETF (
SZK
), annual fees: 0.95%
ProShares UltraShort Consumer Services ETF (NYSEArca:SCC),
annual fees: 0.95%
ProShares UltraShort DJ AIG Crude Oil ETF (NYSEArca:SCO),
annual fees: 0.95%
ProShares UltraShort DJ30 ETF (
DXD
), annual fees: 0.95%
ProShares UltraShort Euro ETF (NYSEArca:EUO), annual fees:
0.95%
ProShares UltraShort Financials ETF (
SKF
), annual fees: 0.95%
ProShares UltraShort FTSE/Xinhua China 25 ETF (
FXP
), annual fees: 0.95%
ProShares UltraShort Gold ETF (NYSEArca:GLL), annual fees:
0.95%
ProShares UltraShort Health Care ETF (
RXD
), annual fees: 0.95%
ProShares UltraShort Industrials ETF (
SIJ
), annual fees: 0.95%
ProShares UltraShort Lehman 20 Year Treasury ETF (
TBT
), annual fees: 0.95%
ProShares UltraShort Lehman 7-10 Year Treasury ETF (
PST
), annual fees: 0.95%
ProShares UltraShort MidCap400 ETF (NYSEArca:MZZ), annual
fees: 0.95%
ProShares UltraShort MSCI EAFE ETF (
EFU
), annual fees: 0.95%
ProShares UltraShort MSCI Emerging Markets ETF (
EEV
), annual fees: 0.95%
ProShares UltraShort MSCI Japan ETF (
EWV
), annual fees: 0.95%
ProShares UltraShort Oil & Gas ETF (
DUG
), annual fees: 0.95%
ProShares UltraShort QQQ ETF (
QID
), annual fees: 0.95%
ProShares UltraShort Real Estate ETF (
SRS
), annual fees: 0.95%
ProShares UltraShort Russell MidCap Growth ETF (
SDK
), annual fees: 0.95%
ProShares UltraShort Russell MidCap Value ETF (NYSEArca:SJL),
annual fees: 0.95%
ProShares UltraShort Russell1000 Growth ETF (
SFK
), annual fees: 0.95%
ProShares UltraShort Russell1000 Value ETF (
SJF
), annual fees: 0.95%
ProShares UltraShort Russell2000 ETF (NYSEArca:TWM), annual
fees: 0.95%
ProShares UltraShort Russell2000 Growth ETF (NYSEArca:SKK),
annual fees: 0.95%
ProShares UltraShort Russell2000 Value ETF (NYSEArca:SJH),
annual fees: 0.95%
ProShares UltraShort S&P 500 ETF (NYSEArca:SDS), annual
fees: 0.95%
ProShares UltraShort Semiconductors ETF (NYSEArca:SSG),
annual fees: 0.95%
ProShares UltraShort Silver ETF (NYSEArca:ZSL), annual fees:
0.95%
ProShares UltraShort SmallCap600 ETF (NYSEArca:SDD), annual
fees: 0.95%
ProShares UltraShort Technology ETF (NYSEArca:REW), annual
fees: 0.95%
ProShares UltraShort Telecommunications ETF (NYSEArca:TLL),
annual fees: 0.95%
ProShares UltraShort Utilities ETF (NYSEArca:SDP), annual
fees: 0.95%
ProShares UltraShort Yen ETF (NYSEArca:YCS), annual fees:
0.95%
Rydex 2x S&P 500 ETF (AMEX:RSU ), annual fees: 0.7%
Rydex Inverse 2x S&P 500 ETF (AMEX:RSW ), annual fees:
0.7%
Rydex 2x S&P MidCap 400 ETF (AMEX:RMM ), annual fees:
0.7%
Rydex Inverse 2x S&P MidCap 400 ETF (AMEX:RMS ), annual
fees: 0.7%
Rydex 2x Russell 2000 ETF (AMEX:RRY ), annual fees: 0.7%
Rydex Inverse 2x Russell 2000 ETF (AMEX:RRZ ), annual fees:
0.7%
Rydex Inverse 2x S&P Select Sector Energy ETF (AMEX:REC
), annual fees: 0.7%
Rydex Inverse 2x S&P Select Sector Financial ETF
(AMEX:RFN ), annual fees: 0.7%
Rydex Inverse 2x S&P Select Sector Technology ETF
(AMEX:RTW ), annual fees: 0.7%
Rydex Inverse 2x S&P Select Sector Health Care ETF
(AMEX:RHO ), annual fees: 0.7%
Rydex 2x S&P Select Sector Energy ETF (AMEX:REA ), annual
fees: 0.7%
Rydex 2x S&P Select Sector Financial ETF (AMEX:RFL ),
annual fees: 0.7%
Rydex 2x S&P Select Sector Technology ETF (AMEX:RTG ),
annual fees: 0.7%
Rydex 2x S&P Select Sector Health Care ETF (AMEX:RHM ),
annual fees: 0.7%
Co-founder of indexfunds.com, author of two books on
investing, and founder of ETFzone.com, Will has been writing on
indexing issues for 8 years. He holds an MBA from the
University of Texas at Austin.
Co-founder of indexfunds.com, author of two books on
investing, and founder of ETFzone.com, Will has been writing on
indexing issues for 8 years. He holds an MBA from the University
of Texas at Austin.