How To Gamble On Vladimir Putin Without Getting...Y'Know

A user's guide.
Author:
Publish date:

That's a lot of volatility.

Or, how to make (or lose) an entire year’s return in one day.

That’s the allure drawing traders to a pair of exchange-traded funds that take Russian stocks and triple their returns with leverage. Daily gains of more than 30 percent and the widest price swings among almost 1,500 U.S.-listed ETFs have fueled a 200 percent increase in shares outstanding in both of Direxion Investments’ leveraged long and short funds since December, while trading volume has jumped more than five-fold….

“If you were to assign movie ratings to ETFs, leveraged products would get a hard R rating,” Eric Balchunas, a Bloomberg Intelligence analyst, said by phone on March 27. “The volatility in this product right now is so high it makes Bitcoin look like Vanguard. They should be used by professionals only.”

Russia and Leverage Are Powerful Mix Luring Hedge Funds to ETFs [Bloomberg]

Related