Market volatility appears to be strengthening demand for funds traded on two exchanges: leverage and Countdown.
Moreover, Douglas Yones, CEO and ETF currency manager, believes that market conditions will promote their demand for them.
“Our market has had a lot of securities in our market over the last five to ten years. The market seems to be on the side. We’ve seen a correction on Friday. “ETF Edge” This week. “Some people are saying, ‘Hey, maybe I don’t want to invest in full, but I don’t want to get capital gains on the sale of positions. What should I do? I can be in short ETFs and reverse ETFs for a long time. I can basically neutralize my exposure.”
Leverage and inverse ETFs Give investors the opportunity to bet on the direction of the stock market. Investors can be long-term or short-term.
Yones’s company is heavily involved in the space. Yones run Direxion Daily Semiconductor Bull 3X Shares (SOXL)which is one of the largest leverage/inverse ETFs. According to the fact set, Broadcom,,,,, Nvidia and Qualcomm It is one of the highest shares in the ETF.
As of Wednesday’s market end, Yones’ETF has grown nearly 84% in the past two years, but has dropped 36% in the past year. It has also dropped by more than 16% over the past week.
“There are two to three market development headlines every day. volatility “We think it’s a whole year of growth,” Yones said.
Vettafi’s Todd Rosenbluth also saw it The demand for single stocks is growing Leveraged ETF.
“Single stock leverage may sound hard to tangle your head. But it’s a kind of inventory that you get risk or risky situations or liquidity benefits of ETF packers,” said the company’s research director.
