How the Inverse exchange traded fund (ETF) work?
This ETF replicate the dayly inverse rentability of an index. So, if the DowJones Industrial Average index (DJIA) goes down 1% this etf go up 1%.I know this can be done by using financial derivatives (specially swaps agreetments) so my questions is more roughly speaking how a swap works so it can create an inverse etf?
Answers: There are several inverse funds. I'll use one example. QID. If you buy the QID, you're profiting as the package of stocks inwardly the QID move to a negative effectiveness. But you're doing so at twice the rate. So, if the market picnic basket of company stocks in the QID are down 1%, after QID is up 2%.
With the DOG, it is a 1 to 1 relationship and more broad. As the DOW goes down 1%, the DOG go up 1%. They are simply taking the opposite side of the trade.
ETFC, Your opinion?
Answers: i like it for the short term...
im waiting for it to go back down so i can buy in again!
i bought in (a) $2.80 but i sold too soon
Don from joppatowne MD??
:( sad to see this stock mentioned, as me and my dad were eyeballing it 2 weeks ago when it was around $2.25... we were ready to jump on, but the volitile market and interest rate cuts and stimulus plan and bad 4th quarter earnings and the state of the union address and more cuts and bond insurers issues stopped us from buying it. we were looking at all kinds of financials as they are a bargain right now, and we missed the run on etrade financial. we are also looking at pwe and hte (both canadian oil companies with high dividends), bac, ubs, wb, c and etfc (all financials), ach (a china aluminum company), itb (a homebuilding company), and aapl (apple computer, a tech stock).
we wanted to diversify this way, we will see what the future holds. he still thinks etfc is a bargain, im just pissed we missed a good run so i'm very angry at the moment :(
If you are doing short term trading, it might be profitable. If you are inclined towards the long term, stay away. It's too risky.
If a stock doesn't income dividends, how do you engineer money stale of it?
If a stock doesn't pay dividends, how do you kind money off of it? Do you hold to sell it when it get higher? That's the individual way?Answers: The stock of late keeps going up within value which you can supply.
The stock gets taken over by another company which may wages something extra to the shareholders
The stock starts to pay dividends subsequently.
trade it at the right time