Investors are always looking for the next big trend on how to make money quickly in the stock market. One such vehicle is called a Leveraged ETF (Exchange Traded Fund) which is a special type that can move very quickly as the market does. Direxion shares are some of the top movers in this market.
These types of securities have been found to make investors a great deal of money when they move in the same direction as the market, but can also mean significant losses if these two directions are opposite. Obviously this type of risk is not for the normal trader, but only for those who are quite bold in their strategies. For the trader who has the kind of nerve for this type of speculation, there is a lot of money to be gained in this manner.
A number of great ETFs exist at this time and these include Direxion shares which are some of the best ones being offered at this time. The Direxion Small Cap Bull is a great example of this type of stock and traders have used it to produce some spectacular gains. Again, this is not for the faint of heart, as a significant amount of education should be obtained before even thinking about investing in this type of vehicle. However, in the long run, the profit potential is quite staggering.
There are some basic bit of information that will help to understand more about ETFs and how they work. Through the first quarter of 2010, investors had put in over eight hundred billion dollars in assets into this type of security. This represents a major increase from the "lowly" total of only three hundred million from five years past. This would seem to indicate that more investment professionals are looking towards ETSs as their way of making money.
At this time there are more than eight hundred sixty separate ETF funds being traded in U.S. markets. Other factors include the fact that ETFs are easy to trade, they have low expense ratios, make it easy to diversify a portfolio and are very tax efficient when put side by side to a comparable mutual fund for comparison purposes.
Traders who have previously dappled in commodities have also found a place in the ETF market. There are now opportunities available to buy almost any type of specialty item including precious metals, currencies and petroleum products for example. Commodity ETF funds make it easy to trade almost any major commodity being offered on the marketplace today.
Investors love the fact that they can protect their entire portfolio against the rate of inflation; they can employ leverage against one specific segment of the market if necessary and they can earn profits when interest rates go up. These types of investments can be used to build a long term portfolio or as a short term solution for day traders who want to make a quick killing. This means that almost any type of investor can profit from holding some of these funds.
No matter what the position is, an ETF fund can be used to great advantage. It doesn't really matter what types of goals exist as the ETFs have proven to be quite diverse for market speculators. Direxion has gained investor confidence with their top performing Daily Technology Bull shares which have shown a return of over 200% in the past.
Considering the economic state of the market, this is an extraordinary return on investment. This kind of Direxion shares has a built in triple leverage that makes it possible to produce large gains in a hurry. This could mean great things for many a portfolio.
Thus the properly educated investor can realize the great potential of these investments.