United States

If you don’t want to lose to operate leveraged ETFs, you should read this July 31, 2009 by Paola Pecora many times, before a market rise, we have encountered this exclamation employed or self-employed: why not habre bought more! The same to a low: why not habre sold twice!. Well, it is no more necessary is to curse and ruin the day, because the possibility of double or triple the acquired position is feasible with a new product in the United States stock market. We already know the ETFs (Exchange Traded Funds or paid-up funds) that are investment instruments that allow you to replicate the performance of various indexes that can represent both a representative market indexes, as to certain sectors, as international companies, and its use allows the possibility both diversify our investment portfolios to take maximum advantage of a positive market trend for us, and diversify our portfolio to reduce risk. These ETFs are traded in the same way that a joint action, you can buy and sell during market, without the stipulated time of permanence nor penalties for anticipated rescue. And to not return to lament us as at the beginning of this article, and if we are very confident of a bullish or bearish trend in a sector, an index or certain companies in a country, came the leveraged ETFs (Leveraged ETF) that allow you to double and even triple the performance of their benchmark indices. Is it not perhaps brilliant double and triple earnings? Yes, it is. But not everything is so easy and wonderful as it seems, and that is due to the trap of leverage. A question to be taken into account and that many investors do not know is that the leverage of the ETF is reviewed and adjusted every day, is to say that if a leveraged ETF lateraliza a time, its value could fall heavily in that period.

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