Leveraged ETFs Still Outshine Margin

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Are leveraged ETFs useful? Investors must be convinced that a leveraged ETF is in fact more efficient and effective than other means of leverage. In this article we compare leveraged ETFs with traditional margin techniques for the third year in a row. Again leveraged ETFs outshine traditional margin leverage for basic directional bets on broad US equities. For bets on small markets and commodities, superiority is less obvious.

Traditionally leverage has meant borrowing money from a broker at margin loan rates and then either buying an ETF or selling it short. The results are fairly precise: market returns less loan interest. With leveraged ETFs, in contrast, leverage is contained in one security which reflects borrowing costs and management fees. This delivers a less predictable but nonetheless attractive return profile. Transaction fees are nearly equivalent in both strategies.

Again this year ETFs fared well against traditional leverage in head-to-head comparisons of returns around the S&P 500. We compared Rydex 2x S&P 500 (NYSEArca:RSU), a leveraged ETF targeting double daily returns, against taking out a margin loan and buying double exposure to the S&P 500 index via SPY, the giant S&P 500 ETF.


Results in 2009 calendar year and 2010 YTD reveal a typical pattern from what we have seen in past years. RSU may trail by a small amount in one period, but overall it leads by a sizable margin.

2009 2010 thru May 12
2X SPY using margin loan 39.16% 1.1%
RSU (targets double daily S&P 500 return) 37.75% 6.64%

2009 2010 thru May 12
2X SPY using margin loan 39.16% 1.1%
RSU (targets double daily S&P 500 return) 37.75% 6.64%
2009 2010 thru May 12 2009 2009 2010 thru May 12 2010 thru May 12 2X SPY using margin loan 39.16% 1.1% 2X SPY using margin loan 39.16% 1.1% RSU (targets double daily S&P 500 return) 37.75% 6.64% RSU (targets double daily S&P 500 return) 37.75% 6.64%

Previously we found RSU won handily over margin in the bear market of 2008, and RSU slightly edged out margin in the bullish month of March 2009.

Investors can easily do comparisons of their own with the following formula: find the ETF benchmark for a leveraged ETF for a few representative periods; multiply by the leverage amount and direction (some go short) and subtract margin interest prorated to the length of time; and compare to the leverage ETF return.

A note on key assumptions: margin loan costs are a key variable of traditional margin leverage. Here we use the rate of 6.14% per year charged by ETrade for sums of $100,000-$250,000 (rates are lower for larger amounts and higher for smaller). Most economists expect current low interest rates to go up from here, so margin leverage should see less favorable conditions in the future.

There are also various qualitative differences to consider. Some are obvious, others more subtle. Leveraged ETFs typically ratchet leverage up by a factor of two or three by constantly buying and selling short-term futures contracts. The use of futures means that leveraged ETFs track daily returns of the underlying index, not its absolute return over time, and these daily returns compound over time.

Compounding of these daily returns amplifies leverage. Volatility is random, but our impression is that leveraged ETFs are 10% to 20% more volatile. Investors should demand slightly higher returns to obtain an equivalent risk-adjusted return to margin strategies, or they could buy slightly less of the ETF to make a fairer comparison. The leveraged ETF still appears attractive.

Other subtle differences exist. Margin requirements mean that investors must post collateral, whereas leveraged ETFs require no collateral and do not impact the rest of the portfolio. A brokerage firm may require $1.20 collateral for $1 in margin of a broad index ETF and as much as $4 to $5 of collateral for a riskier ETF. If the bet goes wrong, the investor can be forced to sell precisely when the market is weakest. The extreme example of this arithmetic can be seen with financials, where leverage sector ETF UYG took a hit but survived with some capital and eventually rebounded in the Spring of 2009. Owning IYF (the underlying unleveraged index) twice on margin would have forced liquidation at rock bottom prices and wiped out the investor.

Shorting adds a further danger. Leveraged ETFs tracking the inverse of an index can never lose more than their original principal, whereas short positions on margin expose the investor to unlimited losses. In essence, short ETFs contain a kind of internal put which has value not reflected in direct returns comparisons.

On the other hand, caution is advised for any leveraged ETF which tracks a small market, especially commodities. Some ETFs have grown to a size where they move markets or broadcast their trades to the detriment of their investors. Anyone new to this field should start with major US equities markets before branching out to shorts or smaller markets.

We would summarize these qualitative differences as trading simplicity of result for simplicity of oversight. Traditional leverage, from the investor's point of view, is complicated, messy, and inconvenient, but its results are straightforward. A leveraged ETF 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. The results are quite satisfactory on average but less predictable.

As always, all leveraged strategies are volatile and strictly for alert, experienced traders.

There are approximately one hundred leveraged ETFs covering every conceivable asset class, both short and long, and with different levels of leverage. The prospectus of each details how leverage is obtained:

  • 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.



    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



    This article appears in: Investing , ETFs


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