Friday, April 8, 2011

Spread ETF's by FactorShare

Just got the heads up from IB about these new spread ETF's.  They look awesome but don't trade much.  It would be cooler if they had options.

From the e-mail I received from IB:

We are pleased to announce the launch of FactorShares -- five innovative, first-to-market spread ETFs --through our partner, Factor Advisors. The initial five FactorShares ETFs pair up major asset classes from among the S&P 500 Index, US Treasury Bonds, Gold, Oil and the US Dollar, and include:
  • FSE: FactorShares 2X: S&P500 Bull/TBond Bear
  • FSA: FactorShares 2X: TBond Bull/S&P500 Bear
  • FSU: FactorShares 2X: S&P500 Bull/USD Bear
  • FOL: FactorShares 2X: Oil Bull/S&P500 Bear
  • FSG: FactorShares 2X: Gold Bull/ S&P Bear

Spread trading involves the simultaneous purchase of exposure to one market segment and sale of exposure to another. FactorShares can simplify spread trading and lower its cost barriers, thus allowing sophisticated investors to simultaneously hold both a bull and a bear position in one leveraged ETF.

FactorShares ETFs are designed to rebalance daily to achieve the desired effect of maintaining dollar neutrality, and are capital efficient, targeting a daily leverage ratio of 4:1 where each dollar invested provides approximately two dollars of long futures exposure and two dollars of short futures exposure simultaneously. FactorShares are available commission-free to Interactive Brokers clients.

For more info:

No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

No comments:

Post a Comment