Posts for Ticker ‘IIH’

More Reverse Splits, or Just Closure, Possible or Needed in ETFs (FAS, FAZ, UYG, BAC, BHH, ARBA, IIH, AKAM, VRSN, UNG, USO, GLD, SDS, SPY, NYX, NDAQ)

Money Stack ImageWe have been large fans of exchange-traded funds, exchange-traded notes, and other exchange-traded instruments which are open for trade throughout the day that are allowed to be invested in just like a stock.  But with all new and growing markets, there are risks that need to be kept in check.  There are some leveraged ETF’s and their inverse counterparts which might need to see reverse share splits in the near future.  The notion of so many low-priced shares being so active may wreak havoc as the funds managing each ETF try to keep up with appropriate derivatives and in buying and selling shares of the components that are supposed to be the underlying securities.  There are even a few ETF’s which should probably just be closed down entirely and liquidated to holders.  Direxion Daily Financial Bull 3X Shares (NYSE: FAS) and The Direxion Daily Financial Bear 3X Shares (NYSE: FAZ) are both prime examples of ETFs which skew total daily exchange trading volume numbers because of low share prices today and massive trading volume.  This is not meant to pick on the fund groups because they created trading vehicles which they did not expect to see some of these moves.  There are many more ETFs and ETNs to consider here.

Direxion just announced a reverse split for another ETF yesterday, but not its two financial triple-leverage ETFs.  Direxion Daily Financial Bull 3X Shares (NYSE: FAS) is now back down close to $8.00 per share, yet it trades 250 million shares on an average day.  The Direxion Daily Financial Bear 3X Shares (NYSE: FAZ) is barely above $5.00 and trades more than 200 million shares on an average day.  So between the FAS and FAZ, you have an average of more than 450 million shares, and at today’s prices that is close to $3 billion worth of nominal value.

This review discusses a portion of the ETFs and ETNs and the ones under discussion today, along with underlying key companies, are Ultra Financials ProShares (NYSE: UYG), Bank of America Corporation (NYSE: BAC), B2B Internet HOLDRs (AMEX: BHH), Ariba, Inc. (NASDAQ: ARBA), Internet Capital Group (NASDAQ: ICGE), Internet Infrastructure HOLDRs (AMEX: IIH), VeriSign Inc. (NASDAQ: VRSN), Akamai Technologies Inc. (NASDAQ: AKAM), United States Natural Gas (NYSE: UNG), United States Oil (NYSE: USO), SPDR Gold Shares (NYSE: GLD), UltraShort S&P500 ProShares (NYSE: SDS), SPDRs (NYSE: SPY), New York Stock Exchange (NYSE: NYX) and the NASDAQ OMX Group Inc. (NASDAQ: NDAQ).
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Posted on: June 23, 2009 – 12:42 pm in Banking, Commodities, ETF, Index, Oil & Gas, Trading Alert, , , , , , , , , , , , , , , ,

ETF Winners & Losers (June 5, 2007)

ETF Tickers: SRS, SDP, SSG, SJH, SZK, SDD, SKK, SKF, SDS, SCC, SJL, FXI, PGJ, HRD, IIH, RWR, ICF, ITB, EZA, UNG

What’s an easy way to tell when the market had a pretty bad hair day, other than looking at the ticker tape?  Seeing that all of the ETF winners for the day are listed as the UltraShort "Whatever" ProShares……they are the inverse move of an any underlying index, so when they are up the index or the market is down.  The top 12 performers today were all in that category. Some of these are leveraged to their index, not it doesn’t mean the worst performers are the underlying index per se.

UltraShort Real Estate ProShares (SRS) 3.52%   
UltraShort Utilities ProShares (SDP) 3.13%   
UltraShort Semiconductor ProShares (SSG) 2.09%
UltraShort Russell2000 Value ProShares (SJH) 1.66%
UltraShort Consumer Goods ProShares (SZK) 1.59%
UltraShort SmallCap600 ProShares (SDD) 1.49%
UltraShort Russell2000 Growth ProShares (SKK) 1.41%   
UltraShort Financials ProShares    (SKF) 1.36%
UltraShort S&P500 ProShares (SDS) 1.35%
UltraShort Consumer Services ProShares (SCC) 1.24%
UltraShort Russell MidCap Val ProShares    (SJL) 1.20%   
UltraShort Russell2000 ProShares (TWM) 1.06%

Other non-short ETF winners:
iShares FTSE/Xinhua China 25 Index (FXI) +1.02%
PowerShares Gldn Dragon Halter USX China (PGJ) +0.80%
HealthShares Cardiology    (HRD) +0.7%

Worse non-Ultra funds today:
Internet Infrastructure HOLDRs (IIH) -1.82%
DJ Wilshire REIT ETF (RWR) -1.76%
iShares Cohen & Steers Realty Majors (ICF) -1.76%   
iShares Dow Jones US Home Construction (ITB) -1.64%
iShares MSCI South Africa Index    (EZA) -1.60%
United States Natural Gas (UNG)    -1.55%

Today was more of a Bernake playing hankie with words than it was China.  Tomorrow’s another day.

DJIA                       13,595.46; -80.86 (0.59%)
NASDAQ               2,611.23; -7.06 (0.27%)
S&P500                1,530.95; -8.23 (0.53%)
10YR-Bond          4.9760%; +0.0470%
NYSE Volume      2,884,657,000
NASDAQ Volume 2,233,690,000

Jon C. Ogg
June 5, 2007

Posted on: June 5, 2007 – 3:38 pm in ETF, , , , , , , , , , , , , , , , , , , ,