It's grilling season, which can only mean one thing: Let's open
the refrigerator and see which ETFs and ETNs are getting
slaughtered, marinated, and grilled.
Here are the top three ETPs that are getting grilled on a
year-to-date (YTD) basis.
Direxion Daily Gold Miners Bull 3X Shrs (NYSEARCA:NUGT)
Although the Great Gold Crash of 2013 (NYSEARCA:GLD) has captured
media headlines everywhere, it's actually gold mining stocks
(NYSEARCA:GDX) that have been really
getting cooked. Over the past year, gold miners have slid
almost 50% in value and are performing substantially worse
than physical precious metals (NYSEARCA:GLTR).
NUGT, which aims for 300% daily leverage to gold miners, has
been nuked 90.25% since the beginning of the year.
Interestingly, analysts have been wrongly focused on "cheap"
valuations in the mining sector instead of acknowledging the
technical direction of gold stock prices which are leading
Trading Commission Free ETFs the Smart Way
Back in November 2012, Dennis "The Menace" Gartman told Money
News "Gold is Good, bug Gold Stocks are Even Better." That
toxic advice, for anyone who took it, has been nothing short
(We told our readers to do the exact reverse. In our
on Feb. 14, we alerted our readers to buy the NUGT's opposite,
the Direxion Daily Gold Miners Bear 3x Shrs (NYSEARCA:DUST). And
today, it's no less the #1 performing ETF this year, up an
VelocityShares 3x Long Silver ETN (NYSEARCA:USLV) -79.24%
Just like its sibling gold, silver (NYSEARCA:SLV) is in a bear
market and prices have fallen 36% over the past six months. And
that's why USLV, which aims for 300% leverage to silver, has been
such an awful trade.
At around $5.50 per share, an announcement of a USLV 1-for-5 or
1-for-10 reverse split should be coming any day now.
On May 8, we told our readers to be short silver. Our
#timestamped trades from that
resulted in a 10% one-month gain in ZSL and a 290% on SLV put
options, which are still open.
VelocityShares Daily 2x VIX ST ETN (NYSEARCA:TVIX) -67.26%
Declining stock market volatility has taken the VIX (^VIX) toward
multi-year lows, which has crushed ETF and ETN products like TVIX
that are long the VIX with daily leverage.
TVIX may ring a bell, because back in March 2012 it lost around
60% in a matter of just two days. Without getting into the gory
details of why TVIX blew up, let's just say it was a "wardrobe
malfunction" by the issuer, Credit Suisse.
Currently, TVIX, at $2.97, now trades in the same forsaken
vicinity as Zynga (NASDAQGS:ZNGA).
Whenever we trade the VIX, we always stick with call/put options
to avoid the operational problems and performance discrepancies
associated with VIX ETPs.
Follow us on Twitter @