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Jbay76 (< 20)

The function of 3X ETF's?

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6

January 29, 2013 – Comments (7) | RELATED TICKERS: FAZ , FAS

I was thinking about getting shares of FAZ sometime this year as I suspect our economy may take a southward dip.  I was told by a Fool to not buy such 3x ETF's unless I intended tohold them for a few days otherwise I'll lose mymoney.  It got me thinking, "What the heck are these investment vehicles?".  So, I was hoping I coudl some of you to chime in and help me understand these 3x ETF's.  I figure anything I get here can compliment what I find on the i-net.

Thanks

J

7 Comments – Post Your Own

#1) On January 29, 2013 at 6:16 PM, chk999 (99.97) wrote:

They are for the punters to bet with?

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#2) On January 29, 2013 at 7:21 PM, L0RDZ (82.11) wrote:

COme  on CHK

THey  are  for  football  coaches  who's ingeniously  ran  teams    decide  to  punt  on  third  downs....    or  maybe  second  or  first  downs  so as  to  pin  the opposing team  in  the corner  and  allow their defenses to score and win games.

 :-)

Sorry  I'm  giddy  because  A  Mcclendon  got  shown the door  at  Chesapeake...

 

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#3) On January 29, 2013 at 8:22 PM, portefeuille (99.67) wrote:

see comments #27,28 here.

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#4) On January 30, 2013 at 12:08 PM, TMFAleph1 (94.89) wrote:

I know it's an eccentric idea, but why not read the prospectus?

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#5) On January 30, 2013 at 12:22 PM, Mega (99.95) wrote:

The real purpose of ETFs is to make money for their sponsor.

Just because a financial asset exists, doesn't mean it has any useful purpose for investors.

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#6) On January 30, 2013 at 12:26 PM, Jbay76 (< 20) wrote:

@TMFAleph1: too ecentric and beleive it or not, I thought I might be able to get some help/perspective here at the Fool without the implied sarcasm.  Way to represent TMF Alex...

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#7) On January 30, 2013 at 1:30 PM, ryanalexanderson (< 20) wrote:

They're pretty good for someone who wants to do statistical arbitrage over a short period. You want loads of leverage for something like that to get any kind of decent return, and a leveraged ETF will save you on transaction costs.

 

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