How Do Foreign ETFs Operate When Markets are Closed?
How Do Foreign ETFs Operate When Markets are Closed? Asian and European stock markets don’t coincide with U.S. trading hours. How are U.S. listed ETFs still able to mimic the performance of foreign indexes even when markets are closed for trading? In this episode, Host, Ron DeLegge, Chief Portfolio Strategist @ ETFguide handles a viewer question from B.L. in Deerfield, IL.
How Do Foreign ETFs Operate When Markets are Closed?Ron DeLegge is the founder of ETFguide and weekly voice of the Index Investing Show. Ron has written the monthly ETP Reporter column for Research Magazine since 2004 and recently launched the ETF Advisor Pro Newsletter in conjunction with ThinkAdvisor. As a former investment advisor for 11 years, he’s helped people to get their minds right, so that they can get their money right. Ron is author of ”Gents with No Cents: A Closer Look at Wall Street, its Customers, Financial Regulators, and the Media” (Half Full Publishing, 2012).
Vilka sektorer av aktiemarknaden gynnas mest av lägre oljepriser?
Oljepriserna har fallit med mer än 40 procent under det senaste året och vi har vant oss vid att se hur aktiekurserna faller i oljebolag, oavsett vilken del av kedjan som de befinner sig i.
Det finns emellertid företag, och därmed aktier, som gynnas av fallet på oljemarknaden. Ron DeLegge på ETFguide har tittat närmare på en sektor, S&P 500 industrials, i denna video. Aktierna som ingår i denna sektor har varit de stora vinnarna på de fallande energipriserna.
Oljepriset
Pris på olja, både på WTI och Brent. Du kan se det aktuella priset på WTI- och Brent-olja, samt hur det oljepriset har utvecklats över olika tidsperioder. Överst visas WTI-priset och under det Brent-priset.
WTI (West Texas Intermediate), även känd som Texas Light Sweet, är den typ av olja som oftast används som riktmärke för prissättning av olja. WTI handlas i New York. Brent är den typ av olja som är vanligast i Europa. Oljefutures går till leverans varje månad året om. Olja handlas bland annat på New York Mercantile Exchange under tickersymbolen CL (avser Light Sweet Crude Oil) och huvudkontraktet prissätts i USD och cent per fat.
Få faktorer har så pass stor påverkan på världsekonomin som priset på olja. Olja förser bilar, lastbilar, flygplan och även de kraftverk som utgör ryggraden i den globala ekonomin med energi. Då oljepriserna stiger, går kostnader upp för transportföretag, pressar deras vinstmarginaler och tvingar dem att höja priserna, vilket påverkar alla andra företag som förlitar sig på dem för att transportera varor och människor.
Däremot gynnas de flesta energibolag av högre oljepriser, antingen i form av högre intäkter för olja, eller på grund av ökad efterfrågan på alternativa energikällor som etanol och naturgas. Den extrema volatiliteten i denna viktiga ekonomiska insatsvara har skapat intresse för så vitt skilda frågor som ”peak oil”, spekulation i det framtida oljepriset och världens ökade aptit på energi samt lett till betydande investeringar i förnyelsebar energi.
Warren Buffetts Favorite Asset Class besides stocks
The greatest investor of our generation (Warren Buffett) made his billions investing in stocks. Warren Buffetts Favorite Asset Class besides stocks
ETFguide examines Buffett
In this episode, Ron DeLegge, Chief Portfolio Strategist @ ETFguide examines Buffett’s other favorite asset class and what investors can learn from it.
A dividend ETF that has gained in value 9 out of 10 years with a dividend yield that’s double the S&P 500’s yield and looks poised for further consistent results.
An incredible 112% homerun call options pick on overlooked sector fund that Wall Street’s analysts completely ignored and wrote off.
A conservative ETF portfolio that has generated more than $23,100 in monthly income cash flow over the past two years alone.
Varför förvaltare föredrar ETFer framför fonder Fler och fler finansiella rådgivare väljer att bygga portföljer med ETF: er i stället för fonder. Varför? Se denna video där Ron DeLegge, Chief Portfolio Strategist på ETFguide samtalar med en finansiell rådgivare om hur han använder ETF: er i sitt arbete.
Se videon som förklarar varför förvaltare föredrar ETFer framför fonder
Ron DeLegge II is the author of ’Gents with No Cents: A Closer Look at Wall Street, its Customers, Financial Regulators, and the Media. DeLegge is not affiliated with the DeLegge Funeral Home in Schenectady, NY, but he’s open to the idea of receiving a small equity stake in the business. Ron is also the weekly voice of the Index Investing Show. He writes for ETFguide.com and Research Magazine.
3 Rules for Investing in Leveraged ETFs. Looking to buy ETFs that offer magnified exposure to stocks, bonds, or gold? Before diving in head-first, Ron DeLegge, Chief Portfolio Strategist @ ETFguide explains how leveraged ETFs work.He talks about 3 Rules for Investing in Leveraged ETFs
Ron also gives you three important rules for using these high octane funds.
Leveraged exchange-traded funds (LETFs), or simply leveraged ETFs, are a special type of ETF that attempt to achieve returns that are more sensitive to market movements than non-leveraged ETFs.[43] Leveraged index ETFs are often marketed as bull or bear funds. A leveraged bull ETF fund might for example attempt to achieve daily returns that are 2x or 3x more pronounced than the Dow Jones Industrial Average or the S&P 500. A leveraged inverse (bear) ETF fund on the other hand may attempt to achieve returns that are -2x or -3x the daily index return, meaning that it will gain double or triple the loss of the market. Leveraged ETFs require the use of financial engineering techniques, including the use of equity swaps, derivatives and rebalancing, and re-indexing to achieve the desired return.[44] The most common way to construct leveraged ETFs is by trading futures contracts.
The rebalancing and re-indexing of leveraged ETFs may have considerable costs when markets are volatile.[45][46] The rebalancing problem is that the fund manager incurs trading losses because he needs to buy when the index goes up and sell when the index goes down in order to maintain a fixed leverage ratio. A 2.5% daily change in the index will for example reduce value of a -2x bear fund by about 0.18% per day, which means that about a third of the fund may be wasted in trading losses within a year (1-(1-0.18%)252=36.5%). Investors may however circumvent this problem by buying or writing futures directly, accepting a varying leverage ratio.[citation needed] A more reasonable estimate of daily market changes is 0.5%, which leads to a 2.6% yearly loss of principal in a 3x leveraged fund.
The re-indexing problem of leveraged ETFs stems from the arithmetic effect of volatility of the underlying index. Take, for example, an index that begins at 100 and a 2X fund based on that index that also starts at 100. In a first trading period (for example, a day), the index rises 10% to 110. The 2X fund will then rise 20% to 120. The index then drops back to 100 (a drop of 9.09%), so that it is now even. The drop in the 2X fund will be 18.18% (2*9.09). But 18.18% of 120 is 21.82. This puts the value of the 2X fund at 98.18. Even though the index is unchanged after two trading periods, an investor in the 2X fund would have lost 1.82%. This decline in value can be even greater for inverse funds (leveraged funds with negative multipliers such as -1, -2, or -3). It always occurs when the change in value of the underlying index changes direction. And the decay in value increases with volatility of the underlying index.
