Mutual Fund News – October 2009
In my All Star Fund Trader publication, I focus on ETFs and tradable mutual funds. Tradable mutual funds are typical those from fund families that have no restrictions on trading frequency, namely Direxion, ProFunds, and Rydex. I also have a long history of using Fidelity funds, especially their Select...
Direxion Changes Mutual Funds to Monthly Leverage
All the leveraged mutual funds offered by Direxion have changed their investment objectives as of the end of September. Previously, Direxion offered a daily leverage factor of 2.5X, or -2.5X in the case of inverse mutual funds. Now it will be 2X or -2X. More important, the basis for the leverage...
Buy the Pullback When it Arrives (GATEX)
The longs are in control with the stock market inching up the charts through the summer. The S&P 500 broke thru 1000 on August 3rd and then got another boost from better-than-expected July employment numbers. And yet, we like to remind our readers that better-than-expected employment figures...
Insincere Concern – the Banning of Leveraged ETFs
Some brokerage firms are banning the sale of leveraged and inverse ETFs. They claim to be taking these steps out of concern for their clients, but the facts paint a different picture. This story has been 16 years in the making. Why all the fuss now? In June, FINRA issued a warning to brokers and...
A Conservative Pick in an Uncertain Market (PRWCX)
Almost two weeks ago, the technicians were out in force. We had tested and broken the intermediate market lows. Collapse seemed inevitable. But signs of a CIT Group (CIT) creditor-rescue and modest earnings have proven a boon to a shaky market. Even crude oil is rising with the tide. It may be...
First Alpha ProShares ETF Launched: CSM
The ProShares Credit Suisse 130/30 Large-Cap Index ETF (CSM) (fund overview) began trading today. It becomes the second exchange-traded product to employ a 130/30 strategy. Using the 500 largest U.S. market cap equities as its universe, and applying a rules-based ranking and weighting methodology,...
First Trust Introduces Community Banking ETF
A new ETF, the First Trust NASDAQ ABA Community Bank Index Fund (QABA), began trading today. This is neither a megabank ETF nor a regional bank ETF – it is a “Main Street” banking ETF. The Investor Guide says community banks now make up 96% of all banks in the US and play an important...
PIMCO Enters ETF Arena With TUZ
Mutual fund behemoth PIMCO has been conspicuously absent from the ETF market. Today that changed with the launch of PIMCO 1-3 Year U.S. Treasury Index Fund (TUZ). Combine this with reports that Vanguard is bidding to buy the iShares ETF label from parent company Barclays, and it looks like we may...
Not Much New at Fidelity Funds
This article is the third in a series about mutual funds. I previously covered Rydex Funds and Direxion Funds. Once upon a time, there was a company that was a true pioneer in the mutual fund business. Their global approach to growth investing (from bygone decades) with the likes of the Magellan...
New Alternative Strategy Funds from Direxion
Direxion is best known for providing tools that help investors and traders implement their strategies. Their line of 3x ETFs, providing +300% and -300% exposure to many popular indexes, have been quite successful for the company. Recently, Direxion took another big step with their new alternative...
