ETF Database submits: FactorShares, a brand new issuer, has submitted five new ETFs for SEC approval in the leveraged ETF space (ticker symbols are still pending). The new funds include the FactorShares S&P 2x US Equity Premium, FactorShares S&P 2x US Anti-Equity Premium, FactorShares S&P 2x US Equity Anti-USD, FactorShares S&P GSCI 2x Crude Oil Premium, and FactorShares S&P GSCI 2x Gold Premium. Each fund will focus on capturing the spread between the S&P 500 and a certain benchmark, adding a twist to how leveraged ETFs have traditionally operated. The Equity Premium ETF will go long the S&P 500 and use futures to short 30-year Treasury Bonds, positioning it to profit if stocks outperform bonds. For investors who are forecasting a declining equity market and a flight to quality (i.e., Treasuries), the Anti-Equity Premium ETF could become an interesting option: this proposed fund would short the S&P 500 and go long in Treasuries
For investors more concerned with the correlation between the dollar and equity markets, FactorShares will offer the U.S. Equity Anti-USD ETF, which will reflect the difference between S&P 500 futures and a dollar index. For commodity-focused investors, both the Oil and Gold ETFs will go long in their respective commodities and short the S&P 500, potentially offering a way to profit if inflation soars and investors dump equities for hard assets and currency.
Complete Story »