The ProShares Ultra S&P500 ETF (SSO) provides 2X leverage on the S&P 500, making it a popular choice for swing traders seeking amplified exposure. However, this leverage also causes long-term decay, primarily due to beta-slippage and market volatility, which results in a marginally negative drift over one-month and one-year periods. While SSO has outperformed the SPY ETF in terms of long-term annualized returns, it underperforms on a risk-adjusted basis because of its higher volatility and negative drift. Therefore, SSO is best suited for active traders and tactical allocations rather than long-term investors, who may suffer from persistent value erosion, especially in volatile markets.
The Invesco S&P 500 Low Volatility ETF (SPLV) selects 100 low-volatility stocks from the S&P 500 and has $6.93 billion in assets. While it has avoided calendar-year losses over 5% in the past decade, it is the worst performer among similar ETFs. The ...
The market's pullback in June is viewed as an excellent buying opportunity ahead of a potential breakout to new all-time highs. Despite initial concerns from Fed Chair Kevin Warsh's comments, the market regained bullish momentum due to strong earning...
The S&P 500 rose 0.9% over a holiday-shortened week, marking its second consecutive weekly gain and 11th positive week in 12. The index initially rallied on optimism about a new Iran peace deal and SpaceX's IPO but briefly dipped after the Federal Re...
Nine Federal Open Market Committee (FOMC) members anticipate interest rate hikes due to an energy shock, despite signs that a US-Iran agreement is reversing. Energy costs caused 60% of the May Consumer Price Index (CPI) increase, but with oil prices ...
JEPI and SPYI ETFs generate monthly income by harvesting option premiums on S&P 500 exposure, with JEPI using equity-linked notes and SPYI writing SPX options. Both funds have reliable distributions backed by dividends and option premiums, but JEPI's...
