Skip to main content

All that glitters -- four new ProShares ETFs

Last week ProFunds debuted four new ETFs that provide short or leveraged exposure to gold or silver. Here are the details:
  • Ultra Gold (UGL) - tracks the Gold Bullion price, London p.m. fix, 200% daily objective
  • Ultra Short Gold (GLL) - tracks the Gold Bullion price, London p.m. fix, -200% daily objective
  • Ultra Silver (AGQ) - tracks the Silver Bullion price, London fix, 200% daily objective
  • Ultra Short Silver (ZSL) - tracks the Silver Bullion price, London fix, -200% daily objective
These ETFs use futures and forward contracts to deliver twice the daily performance of the underlying for the Ultra ETFs and twice the inverse of the underlying for the Ultra Short ETFs on a daily basis.

As was the case with the recent introduction of the Ultra Crude Oil (UCO) and the Ultra Short Crude Oil (SCO), these new ETFs are a bit late in being introduced. The weekly chart below shows that gold peaked way back in March of 2008. Investors would have been glad to have had that Ultra Short Gold ETF around to play that move.

On the other hand, there are many commentators and bloggers who are expecting gold to rocket higher as the U.S. government prints money and issues billions in Treasury bonds to support all the bailouts and stimulus packages. At that point, the Ultra Gold ETF will come in handy.

Weekly Chart of GOLD, 12-09-2008
Below we see a similar picture with respect to silver. It also peaked in March and it is unfortunate the Ultra Short Silver ETF was not available at that time.

Weekly Chart of SILVER, 12-09-2008
It would seem that the Ultra Gold ETF (UGL) is being embraced by investors as volume seems to be growing nicely in the few days since the ETF was introduced. Given the economic backdrop, this particular ETF may indeed turn out to be a real winner.

Disclosure: none

Comments

Popular posts from this blog

Unlock Stock Market Profits - Key #1

This is the first in an ongoing series of articles where I discuss what I feel are keys to successful investing. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. (Click here to read the original post)

There are two basic steps to investing. First, you need to find stocks that seem to have some potential. Then you have to determine whether these stocks are actually good investments. There are many stocks that at first glance look interesting, but further research reveals that there are too many negatives to warrant taking a position.

This first post in the series starts at the beginning: getting good investment ideas.

Key #1: If something special is happening to a stock, it will be reflected in some kind of unusual activity in the markets.

As individual investors, we will never be the first to know; however, unusual activity can be an early sign that allows us to follow the Wall Street professionals and …

Unlock Stock Market Profits - Key #4

This is the fourth article in a series of posts describing 10 tools to help you identify and evaluate good investing ideas. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. (Click here to read the original post)

With this fourth post, we will continue another step along the path of finding stocks that seem to have some potential. The first post in the series discussed how to use unusual activity to identify investing ideas. The second post described how to use stock screeners. The third post described how to use lists of new highs and new lows. This post will focus on identifying social or business trends in order to find investing ideas.

Information on new trends might turn up anywhere. In conversation with friends or business associates, in newspapers or magazines, on TV or though your work. The key is to be aware of trends and how they start, stop or change. We'll start by describing what to lo…

Free stock alerts, Trend Leaders, Bollinger Band Breakouts and Cash Flow Kings for Jan 16, 2009

This post is to announce that the latest list of free stock alerts is up and available at Alert HQ. Each week we scan over 7400 stocks and ETFs looking for fresh BUY and SELL signals. We apply a combination of proprietary and standard technical analysis techniques to identify those stocks that are beginning to move. Our goal is to identify stocks or ETFs that are undergoing reversals, either to the upside or to the downside.

Wait, there's more...

We also use the Alert HQ process to generate more free lists of stocks and ETFs

The first byproduct of the Alert HQ process is the Trend Leaders list, our collection of stocks in strong up-trends. These stocks are registering strong signals using Aroon analysis, DMI and MACD. They are also above their 50-day exponential moving average. This week's list is now available at the TradeRadar site on the Trend Leaders page.

As another byproduct of the Alert HQ process we have generated a list of stocks that have broken either above their upper…