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GAMING AND ESPORTS
ESPO VanEck Vectors Video Gaming and eSports ETF YTD 24.36% $47.39
HERO Global X Video Games & Esports ETF
YTD 24.57% $20.40
BJK VanEck Vectors Gaming ETF
YTD -19.08% $33.78
NERD Roundhill BITKRAFT Esports & Digital Entertainment ETF YTD 12.33% $18.04
Yahoo Finance: Most Popular ETFs Since Market Bottom.
https://finance.yahoo.com/news/most-popular-etfs-since-market-191500928.html
Definitely an opportunity.
I'm not one to subscribe to the doom and gloom that's being pushed. Sadly, I feel it's becoming political, more than paying attention to the facts as they come out.
Pay more attention to what's going on around you and world wide, then plan your investments accordingly.
Quite an interesting read. Very valid points made. Its indicating the world as we knew it in February is not coming back. Social isolation will become the norm. Sad, just very sad. But an opportunity in the least.
Added more on the drop back today. Still don't see how this moves down despite WTI at $20
First, look at recent news releases from the fund's company in regards to NRGU.
I'm curious as well.
What do you think of UGAZ? Any potential here?
John, maybe you can explain the NRGU and ERX movement. WTI (and others) is in the shi*ter and it just goes up. I pulled my orders this morning looking at crude in freefall. SCO acted appropriately.
I'm in USL..cost basis $10.15
I figured as much, but thanks for the good read. It was educational.
I put a little gambling $$ into DEAC, as they are merging with DK's. It's amazing how much $$ goes into sports betting.
Not the 3 that I selected.
Yahoo Finance: Credit Suisse AG Announces That the Intraday Indicative Value of its VelocityShares™ 3x Long Crude Oil ETNs Was Equal to or Less Than Zero.
https://finance.yahoo.com/news/credit-suisse-ag-announces-intraday-191500211.html
Seeking Alpha: 2 Warnings From Crude Oil - ETF/ETN Products And Options Take Note.
https://seekingalpha.com/article/4339440-2-warnings-from-crude-oil-etf-etn-products-and-options-take-note
Looking at the way shale companies are moving, USO IS in play... Correct?
I am starting to nibble. All three tickers were green.
How we are not under $2 on NRGU doesn't add up.
CRUDE BOTTOM
NRGU 2.26 2.61
UCO 12.82 15.77
ERX 11.43 12.14
TOTAL 26.51 30.52
Last 3 weeks in May. That is when I will finish my buying.
Week of Apr 13th start small position
Week of Apr 20th continue total 1/6th
Week of Apr 28th at least 1/3 position
Week of May 4th major purchase 30%
Week of May 11th major purchase 30%
Week of May 18th finish purchase 6%
NRGU 3X 50% __________________________________________
UCO 2X 25% ____________________________________________
ERX 2X 25% _____________________________________________
2.5X
Conservatively WTI $15.00 to $25.00 Selling week of June 1st.
40% X 2.5X gives you a double (bagger).
The problem with it is that they don't know how many shale companies will make it through this intact. It could be 2021-2022 before crude is back to levels that many shale companies will be able to be profitable. This could cripple shale output for 5 years. An eft or etn solely comprised of WTI shale companies, I wouldn't recommend either at this point.
Why is GUSH taking off?
Index Sector Weightings %
Oil & Gas Exploration & Production 76.77
Oil & Gas Refining & Marketing 16.30
Integrated Oil & Gas 6.93
Index Top Ten Holdings %
WPX Energy 2.80
Whiting Petroleum 2.76
Apache 2.66
EQT 2.60
Callon Petroleum 2.52
Range Resources 2.50
Concho Resources 2.47
Noble Energy 2.46
Eog Resources 2.46
Devon Energy 2.46
The S&P Oil & Gas Exploration & Production Select Industry Index (SPSIOPTR) is provided by Standard & Poor's Index Provider and includes domestic companies from the oil and gas exploration and production sub-industry. The Index is designed to measure the performance of a sub-industry or group of sub-industries determined based on the Global Industry Classification Standards (GICS).
A couple splits along the way.
Although I like the idea of a "pure play" as in USO, it is not a leveraged fund.
I am going to look into these in depth.
USO holds WTI monthly contracts.
West Texas Intermediate. Texas Light Sweet. This is the underlying commodity of New York Mercantile Exchange's oil futures contracts.
Fund Details
The United States Oil Fund® LP (USO) is an exchange-traded security designed to track the daily price movements of West Texas Intermediate ("WTI") light, sweet crude oil. USO issues shares that may be purchased and sold on the NYSE Arca.
The investment objective of USO is for the daily changes in percentage terms of its shares' NAV to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in price of USO's Benchmark Oil Futures Contract, less USO's expenses.
USO's Benchmark is the near month crude oil futures contract traded on the NYMEX. If the near month futures contract is within two weeks of expiration, the Benchmark will be the next month contract to expire. The crude oil contract is WTI light, sweet crude oil delivered to Cushing, Oklahoma.
USO invests primarily in listed crude oil futures contracts and other oil-related futures contracts, and may invest in forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less.
USO's Fund Benefits
USO offers commodity exposure without using a commodity futures account.
USO provides features including, intra-day pricing, and market, limit, and stop orders.
USO provides portfolio holdings, market price, NAV and TNA on its website each day.
From what I read on USO strategy, it looks as though they are specific to shale. This would be the reason I looked away from it. Its 52 week range is 2.31 -13.85. As of March 1st, its price was $10.00. I would expect it to get back to a March 1 level to call it a basic recovery. If you look at the others that you mentioned, the reward is not only higher, but it has the propensity to move faster. I don't know that I agree with UCO. Something doesn't look right. I haven't really looked into it, but at a glance it doesn't look like the "pot of gold" is as substantial as NRGU and ERX
"Our strategy
The investment seeks the daily changes in percentage terms of its shares’ per share net asset value (“NAV”) to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the price of a specified short-term futures contract on light, sweet crude oil called the “Benchmark Oil Futures Contract,” less USO’s expenses. USO seeks to achieve its investment objective by investing primarily in futures contracts for light, sweet crude oil, other types of crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum-based fuels."
Pure play on monthly Crude oil contracts.
US Oil Fund drops 30% after changing structure again as popular ETF tries to stave off collapse
PUBLISHED TUE, APR 21 2020
By Pippa Stevens
CNBC
The Untied States Oil Fund dropped 30% on Tuesday as managers made multiple changes to the fund’s structure in an effort to stave off additional losses.
The fund, which trades under the ticker USO and which is popular with retail investors, seeks to track the price of oil.
One change is that the fund will now invest in multiple futures contracts, rather than focusing on the contract for the nearest month.
The United States Oil Fund, a popular exchange-traded security known for its ‘USO’ ticker, plunged more than 30% on Tuesday as the fund’s managers made repeated changes to the fund’s structure in an effort to stave off additional losses. The fund, which is popular with retail investors, seeks to track the price of oil.
The latest change to USO’s terms came on Tuesday afternoon when the fund said it would invest in varying oil futures contracts. According to a regulatory filing, USO has already moved money into the oil contract for August delivery.
Originally, the fund’s structure called for it to buy futures in the nearest monthly contract, rolling to the next month’s contract two weeks before expiration. But amid the current meltdown in the oil market, which has seen prices drop to record lows, the fund was forced to change its structure in an effort to stem losses.
The first changes were made on Friday.
In afternoon trading USO pared some of its losses, trading roughly 22% lower at $2.93.
In addition to shifting which contracts the fund can hold, USCF, the manager of the fund, said on Tuesday that it was temporarily suspending the issuance of so-called creation baskets. Creation baskets are how an ETF creates new shares to meet demand. The baskets hold the underlying securities, which in this case are plummeting oil futures. With the halting of these creation baskets, the ETF will essentially now trade with a fixed number of shares like a closed-end mutual fund.
Last week USCF first changed the structure of the USO fund so that it could hold longer-dated contracts. A regulatory filing on Friday showed that the fund intended to have about 80% exposure to the front-month contract, with 20% in the second-month contract.
But as oil prices continue to fall off a cliff, on Tuesday the fund again altered how its holdings would be distributed across contracts, as well as which contracts it would own.
“Commencing on April 22, 2020, USO in response to ongoing extraordinary market conditions in the crude oil markets, including super contango, may invest ... in any month available or in varying percentages,” a regulatory filing said.
The filing showed that the fund currently has 40% of its portfolio in June contracts, 55% in July contracts, and 5% in August contracts.
USCF did not provide a comment.
John Davi, founder and CIO of Astoria Portfolio Advisors, said the new structures are being implemented in an effort to protect investors from plunging crude prices. The coronavirus pandemic continues to sap worldwide demand for crude, which has sent prices to their lowest levels on record.
According to Davi, the USO is primarily owned by retail investors, which can be dangerous for those who believe they are betting on oil prices moving higher over time, without fully understanding the dynamics in the commodity market.
“To buy USO you have to understand the oil futures market,” Davi told CNBC. “They [retail investors] just buy the ETF because they think the price of crude will go up, but they don’t understand the drivers, which are fairly complicated.”
On Monday, the May contract for oil fell to a negative price, an unprecedented event that wreaked havoc on the oil market. The contract expires today. USO likely had already sold that contract because it has stated in the past that it would invest in the next contract two weeks before expiration.
June futures began cratering on Tuesday, pressuring the fund. June futures expiring in a month dropped more than 40% on Tuesday. July contracts fell 26%. The May contract, however, recovered a bit and settled at $10.01 per barrel.
The rapid decline in the June and July contracts likely forced the fund to change structures yet again Tuesday afternoon.
Without the changes, the USO could run into trouble if those contracts also fall to a negative value as they near expiration, mimicking the May contract’s plunge ahead of its expiration.
Negative futures value is unprecedented and it is unclear how products like exchange-traded funds built for the retail investor to participate in the market will handle such events.
Yet by changing the structure of the fund, it may deviate from its stated purpose of tracking the future price of oil.
Hayman Capital Management CIO Kyle Bass has been warning investors about the danger of exchange traded funds that track oil prices.
“Retail has been plowing into these oil contracts thinking they’re buying spot crude oil when they’re buying the next front month. So they’re paying $22 a barrel when the spot market’s negative $38. Retail investors are going to get fleeced if they continue to fly into these oil ETFs,” he said Monday on CNBC’s “Closing Bell.”
I am actually lightening my exposure to NAIL and JETS.
SECTOR ETF AND ETN BEST TICKERS APRIL 2020
Transportation
JETS - Airlines
Real Estate
NAIL – Builders and Supplies $7.41 - $14.41 3,150,000 Vol (49%) XXX
DRN – Direxion Real Estate $6.60 - $11.11 1,100,000 Vol (40%)
Finance
FAS
DPST – Direxion Regional banks $4.63 - $7.74 1,760,000 Vol (+40%) XXX
Energy
CRUDE
BULL NRGU
Gold/Silver
CDE
USLV – Silver
GDX VanEck Vectors Gold miners $25.04 - $28.95 66,000,000 Vol (+14)
Entertainment
BJK – VanEck Vectors Gaming $24.39 - $29.01 55,000 Vol (+16%)
Travel
AWAY - ETFMG Travel $13.17 - $15.75 16,000 Vol (+16%)
Cannabis
MJ - $10.77 - $11.45 538,000 Vol (+6%)
Why are NRGU UCO ERX buys and USO is not.
US Oil Fund drops 30% after changing structure again as popular ETF tries to stave off collapse
PUBLISHED TUE, APR 21 2020
By Pippa Stevens
CNBC
The Untied States Oil Fund dropped 30% on Tuesday as managers made multiple changes to the fund’s structure in an effort to stave off additional losses.
The fund, which trades under the ticker USO and which is popular with retail investors, seeks to track the price of oil.
One change is that the fund will now invest in multiple futures contracts, rather than focusing on the contract for the nearest month.
The United States Oil Fund, a popular exchange-traded security known for its ‘USO’ ticker, plunged more than 30% on Tuesday as the fund’s managers made repeated changes to the fund’s structure in an effort to stave off additional losses. The fund, which is popular with retail investors, seeks to track the price of oil.
The latest change to USO’s terms came on Tuesday afternoon when the fund said it would invest in varying oil futures contracts. According to a regulatory filing, USO has already moved money into the oil contract for August delivery.
Originally, the fund’s structure called for it to buy futures in the nearest monthly contract, rolling to the next month’s contract two weeks before expiration. But amid the current meltdown in the oil market, which has seen prices drop to record lows, the fund was forced to change its structure in an effort to stem losses.
The first changes were made on Friday.
In afternoon trading USO pared some of its losses, trading roughly 22% lower at $2.93.
In addition to shifting which contracts the fund can hold, USCF, the manager of the fund, said on Tuesday that it was temporarily suspending the issuance of so-called creation baskets. Creation baskets are how an ETF creates new shares to meet demand. The baskets hold the underlying securities, which in this case are plummeting oil futures. With the halting of these creation baskets, the ETF will essentially now trade with a fixed number of shares like a closed-end mutual fund.
Last week USCF first changed the structure of the USO fund so that it could hold longer-dated contracts. A regulatory filing on Friday showed that the fund intended to have about 80% exposure to the front-month contract, with 20% in the second-month contract.
But as oil prices continue to fall off a cliff, on Tuesday the fund again altered how its holdings would be distributed across contracts, as well as which contracts it would own.
“Commencing on April 22, 2020, USO in response to ongoing extraordinary market conditions in the crude oil markets, including super contango, may invest ... in any month available or in varying percentages,” a regulatory filing said.
The filing showed that the fund currently has 40% of its portfolio in June contracts, 55% in July contracts, and 5% in August contracts.
USCF did not provide a comment.
John Davi, founder and CIO of Astoria Portfolio Advisors, said the new structures are being implemented in an effort to protect investors from plunging crude prices. The coronavirus pandemic continues to sap worldwide demand for crude, which has sent prices to their lowest levels on record.
According to Davi, the USO is primarily owned by retail investors, which can be dangerous for those who believe they are betting on oil prices moving higher over time, without fully understanding the dynamics in the commodity market.
“To buy USO you have to understand the oil futures market,” Davi told CNBC. “They [retail investors] just buy the ETF because they think the price of crude will go up, but they don’t understand the drivers, which are fairly complicated.”
On Monday, the May contract for oil fell to a negative price, an unprecedented event that wreaked havoc on the oil market. The contract expires today. USO likely had already sold that contract because it has stated in the past that it would invest in the next contract two weeks before expiration.
June futures began cratering on Tuesday, pressuring the fund. June futures expiring in a month dropped more than 40% on Tuesday. July contracts fell 26%. The May contract, however, recovered a bit and settled at $10.01 per barrel.
The rapid decline in the June and July contracts likely forced the fund to change structures yet again Tuesday afternoon.
Without the changes, the USO could run into trouble if those contracts also fall to a negative value as they near expiration, mimicking the May contract’s plunge ahead of its expiration.
Negative futures value is unprecedented and it is unclear how products like exchange-traded funds built for the retail investor to participate in the market will handle such events.
Yet by changing the structure of the fund, it may deviate from its stated purpose of tracking the future price of oil.
Hayman Capital Management CIO Kyle Bass has been warning investors about the danger of exchange traded funds that track oil prices.
“Retail has been plowing into these oil contracts thinking they’re buying spot crude oil when they’re buying the next front month. So they’re paying $22 a barrel when the spot market’s negative $38. Retail investors are going to get fleeced if they continue to fly into these oil ETFs,” he said Monday on CNBC’s “Closing Bell.”
Following Monday’s price action, Bass, who said he is short some energy-focused ETFs, tweeted that he would demand 100% collateral.
@Jkylebass
If May WTI Crude went negative -$40, and June WTI Crude is currently down $8 to $11 (on its way to negative), can US exchange listed oil ETFs go below Zero? If I were a major counterparty after yesterday’s session, I would demand more than 100% collateral. #USO #usoil
…I guess the answer was 66% lower very quickly. https://t.co/X6xTEQtBvQ
— 🇺🇸 Kyle Bass 🇹🇼 (@Jkylebass) April 20, 2020
…Here in TX (despite Trump’s plea to MBS), the storage facilities are full. Pipelines are full of crude and I was just told Cushing won’t take any more crude. What will the price of spot crude oil be when they literally can’t give it away? #OilPriceWar @JavierBlas
— 🇺🇸 Kyle Bass 🇹🇼 (@Jkylebass) April 2, 2020
Also watching NAIL. Its close to a bottom also. Might be a slightly longer term play, but the returns could be massive.
I believe we will see a bottom on those by the end of the week. NRGU is very volatile. When it runs watch out. Like SCO did today! We have a very good opportunity to set up a nice cushion for retirement with the current state of the market. I plan to fully take advantage of it!
CRUDE
NRGU
2.26
UCO
12.82
ERX
11.43
TOTAL
26.51
ETF ETN not "buy and hold!"
I want to move "in and out."
My original thinking was a 14 day hold. Possibly a maximum 21 days towards the end of May.
BUT CRUDE is getting so crushed already, maybe I should look to nibble right now. I would start very slowly.
At it stands, my 3 tickers are
NRGU
UCO
ERX
I believe that one will give you the most bang for your buck!
Good. One of three tickers I may use.
That was the play.
SCO +33% over night!
Ive been following it pretty closely and have not heard anything mentioned as of yet.
OIL no longer trading April 30, 2020.
Any news NRGU, liquidation, reverse split, anything???
Looks like your going to get the $1.50 or better on NRGU. SCO is a monster this morning.
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An exchange-traded fund (ETF) is a type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, although they can invest in any number of industry sectors or use various strategies. ETFs are in many ways similar to mutual funds; however, they are listed on exchanges, and ETF shares trade throughout the day just like an ordinary stock.
A well-known example is the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index. ETFs can contain many types of investments, including stocks, commodities, bonds, or a mixture of investment types. An exchange-traded fund is marketable security, meaning it has an associated price that allows it to be easily bought and sold.
An ETF is called an exchange-traded fund since it's traded on an exchange just like stocks. The price of an ETF’s shares will change throughout the trading day as the shares are bought and sold on the market. This is unlike mutual funds, which are not traded on an exchange, and trade only once per day after the markets close. Additionally, ETFs tend to be more cost-effective and more liquid when compared to mutual funds.
Exchange-traded funds (ETFs) are the hottest financial investment vehicle since the mutual fund. In fact, the investment product is on track to replace mutual funds with its often-lower fee structure and easier-to-understand stock-like price action.
ETFs have a not-so-well-known cousin. The exchange traded note (ETN) is something that many retail investors may not know about. It is time to shed some light on the ETN and decide if this product has a place in your portfolio.
In practice, the two are very similar. Both are designed to track an underlying asset, both often have lower expense ratios than actively managed mutual funds, and both trade on the major exchanges just like stock.
The main difference is under the hood. When you invest in an ETF, you are investing in a fund that holds the asset it tracks. That asset may be stocks, bonds, gold or other commodities, or futures contracts.
An ETN is more like a bond. It's an unsecured debt note issued by an institution. Just like with a bond, an ETN can be held to maturity or bought or sold at will, and if the underwriter (usually a bank) were to go bankrupt, the investor would risk a total default.
For that reason, before investing in an ETN, research into the credit rating of the underwriter is an important metric. If the underwriter were to receive a credit downgrade, shares of the ETN would likely experience a downturn unrelated to the underlying product it's tracking.
Because an ETN doesn't buy and sell assets within the funds like an ETF, taxes are not triggered until the fund is sold, often years later. This will trigger long-term capital gains (which have a lower tax rate) rather than short-term capital gains.?
Don't count out ETNs. These funds are more efficient than some ETFs and have, at least for now, favorable tax treatment for longer-term investors.
Another advantage of ETN investing is the lack of tracking errors. There are more than 7,000 ETFs currently on the market.2? They achieve varying levels of success when tracking their respective indexes. Because of expenses, investors will notice some amount of divergence from the index they track, making the fund underperform the index over time.
This does not happen with ETNs. Because an ETN does not rely on the buying and selling of the underlying asset, expenses are not amassed. An ETN simply pays investors once the fund matures based on the price of the asset or index. There's no tracking error because the fund itself isn't actively tracking. Market forces will cause the fund to track the underlying instrument, but it's not the fund doing the tracking.
If you follow the age-old rule that says you should invest only into what you understand, ETFs are a better choice. Part-time investors have an easier time understanding products with stock-like characteristics. Since an ETN has bond-like characteristics, it's more complicated.
The most popular exchange-traded products are ETFs. One of the most popular ETNs is the JP Morgan Alerian MLP Index ETN (AMJ), which has an average volume of a little over 4.5 million shares.3? The SPDR S&P 500 (SPY) ETF, by contrast, has an average daily volume of over 168 million shares.4? This clearly shows that investor appetite is heavily weighted toward ETFs.
ETFs are exponentially larger in collective volume than ETNs, but much like stocks versus bonds, stocks receive more attention from retail investors because they are easier to understand. Deciding that ETNs are right for your portfolio is appropriate, provided you have done the research and gained an appropriate level of understanding with which to make that determination.
Inverse ETFs and inverse ETNs may be also be leveraged, meaning, in this case, they aim to offer a return 2x or 3x the inverse return of their underlying benchmark, before fees.4? Leveraged ETPs offer multiples of the returns or the reverse of the returns of their benchmark, but they also may produce losses that are multiples of the typically expected losses. It's possible to quickly lose the entire value of your investment.
Inverse ETFs and ETNs aren't for investors who don't intend to actively monitor and manage their portfolios. You should conduct thorough research before you commit money to inverse ETFs, inverse ETNs, or any other investment.
There are many inverse ETFs to consider. Here are several that you can add to your portfolio if you feel they're right for your investment strategy.
Here are several -2x and -3x leveraged inverse ETFs. These products come with lots of risk and may not be right for every investor.
Below are several inverse ETNs to consider if you feel they'd be a good addition to your portfolio.
Here are several -2x, and -3x leveraged inverse ETNs. These products come with lots of risk and may not be right for every investor.
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