FactorShares Files To Launch Leveraged Derivative ETFs
ETF issuer FactorShares has come up with a unique twist on leveraged ETFs: Leveraged bets on index spreads and the company has filed to launch five such ETFs. The ETFs offer equity, fixed income, currency and commodities exposure.
The FactorShares S&P 2x US Equity Premium will hold a long position in the S&P 500 while shorting 30-year Treasuries while the FactorShares S&P 2x US Anti-Equity Premium will do the reverse, long Treasuries, short stocks.
The FactorShares S&P 2x US Equity Anti-USD pits the U.S. dollar against the S&P 500.
The FactorShares S&P GSCI 2x Crude Oil Premium offers long exposure to crude oil while shorting stocks and the FactorShares S&P GSCI 2x Crude Gold Premium does the same with gold.
Investors should note the commodities funds invest in futures and that new ETFs feature total expenses as high as 1.34%.
