If The Bitcoin ETF Is Approved, Should You Buy It?

Matt Thalman - INO.com Contributor - ETFs


On March 11th, the Securities and Exchange Commission will release its ruling on whether or not a Bitcoin ETF will be approved. Back in 2013 the Winklevoss twins, you may remember them from the story on how Facebook Inc. (NASDAQ:FB) was started, filed for their Bitcoin Trust ETF to be approved. Others have been submitted since then, but that ETF will be the first to be approved or denied by the SEC.

Some experts believe the Bitcoin ecosystem could attract as much as $300 million within the first week of the ETF being approved. That sort of cash flow would certainly help the currency move higher from its current $950 per coin value. But, with all the secrecy surrounding the cryptocurrency is this something you want to be involved in from either owning Bitcoins outright or from the convenience of an ETF? Continue reading "If The Bitcoin ETF Is Approved, Should You Buy It?"

ETFs to Buy, to Sell, and to Watch in 2017

Matt Thalman - INO.com Contributor - ETFs


Now that we have rung in the New Year, now is a good time to take a look at your portfolio and make some adjustments. But, before you start buying and selling, you need to know what to buy, what to sell and what you should have on hold.

So with that in mind, let's take a look at a few Exchange Traded Funds you may want to buy, a few you should sell, and a couple that you should have in your hold or watch list.

What To Buy

In 2016 one of the top-performing ETFs was the Direxion Daily Regional Banks Bull 3X Shares (PACF:DPST). DPST rose more than 114% in 2016 due to its exposure to regional banking stocks, and of course is three times bullish leverage. And while most of the time I would tell you not to follow a trend from one year to the next, 2017 is going to be different. The banking stocks rose in 2016 for a number of reasons, but mainly because the economy grew stronger and interest rates rose.

There are no signs at this point indicating that neither of those trends will cease to continue in 2017, so ride this trend.

Ok, let's slow down and understand why this trend will continue to work. Continue reading "ETFs to Buy, to Sell, and to Watch in 2017"

3 Big 'Exchange Traded Fund' Losers of 2016

Matt Thalman - INO.com Contributor - ETFs


While we all know the saying, 'past performance is not indicative of future results', taking a look back at what happened in the past is always a smart move. That is because as the other saying goes, 'those who do not know history are doomed to repeat it.' And the past mistakes we are about to discuss are certainly not mistakes you want to be repeating anytime soon.

So now that 2016 is over, let's take a look at a few of the worst performing Exchange Traded Funds during the year and see what we can learn from these epic failures.

The biggest Exchange Traded Fund loser of 2016 was Direxion Daily Junior Gold Miners Index Bear 3X Shares ETF (PACF:JDST) which lost an astonishing 97.95% of its value in 2016. The three times leveraged bear portfolio ran into a buzz saw in 2016 and lost investors some serious capital. At its last reporting the fund only had $84 million in assets under management, which is scary for a fund that has an inception date in October 2013. JDST attempted to inverse exposure to the Market Vectors Junior Gold Miners Index, which is a market capital weighted index of mining companies that receive at least 50% of their revenue from gold or silver mining. Furthermore, the index caps exposure to silver mining companies at 20% each quarter, meaning the index is 80% gold mining. Continue reading "3 Big 'Exchange Traded Fund' Losers of 2016"

Top Performing ETFs of 2016

Matt Thalman - INO.com Contributor - ETFs


With 2016 coming to an end, let's take a look at a few of the top performing Exchange Traded Funds of 2016. With the major indexes up for the year; Dow Jones Industrial Average (DJI) up 14%, the S&P 500 (SP500) up 10.75%, and the NASDAQ (COMP) up 9%, one may think the top performing ETFs would be up just slightly more than that. But, that's not the case by a long shot.

The top 2016 ETFs are all up more than 100% year-to-date!

So, let's take a look at what performed well this past year and whether or not their performance will continue moving forward.

Shares of Direxion Daily Regional Banks Bull 3X Shares (PACF:DPST) have risen more than 114% year-to-date. The ETF focuses on US regional banking stocks but leverages its bullish exposure three times. What is interesting is that while DPST is up 114% year-to-date, it's up 107% over just the last three months. In the last three months the Presidential Election took place and Donald Trump's surprise victory has sent stocks in a number of industries higher. The banking industry had been demonized since the financial crisis and government regulation has really held back the industry. Trump told voters during the campaign that he would de-regulate, and many believe that includes the banking industry. Continue reading "Top Performing ETFs of 2016"

A Few Crazy Niche ETFs, But May Be Worth Owning

Matt Thalman - INO.com Contributor - ETFs


Through my search to find great Exchange Traded Funds to tell I have run across a number of very niche ETFs that at first seem a little crazy. But after further research into some of them, they may have actually found a profitable market opportunity that you can now own.

Before we get into three of the more interesting ETFs, I would like to note that these ETFs are on the riskier side and it really wouldn’t be prudent for investors to go "all-in" with these funds.

Now that we have gotten the disclosure out of the way let's dig in. Continue reading "A Few Crazy Niche ETFs, But May Be Worth Owning"