EXCERPT
Leveraged ETFs are hated by many gurus but are loved by investors. Are we sitting on another financial powder keg? Or are critics going a bit overboard? Here’s a small case study that may help shed some light on a huge controversy. FULL ARTICLE.
BY: Marc Gerstein
CATEGORY: What’s Working
Marc,
Thank you for the fresh investment idea for this volatile market.
You may know that this strategy is also called pair trading.
The idea of pair trading is if you think your investment vehicle has an edge, but want to hedge it against the market downfall, then short the market. Beta of investment vehicle is to be used as a ratio to calculate size of the required hedge.
I haven’t been using such strategy yet, but tests with my ports showed great result.
Marc or Marco,
I’m wondering where P123 stands in regard to developing the capability to run ETF simulations.
Is there a timeline? Is this capability a work in progress?
Is this an important feature to other users?
I think this would be very useful, particularly since the results of a screen are so different than the results of a sim. Etf’s seem like a very useful vehicle to provide diversification. I invest with a small call stock portfolio, a large cap portfolio, and would like to confidently compliment these with an ETF portfolio (or three).
Isaac