etf investing in ABS, MBS or

Discussion in 'ETFs' started by freshprince, Sep 17, 2009.

  1. Hi
    i am looking for etf s which invest in ABS or MBS
    does someone here know some??

    i am also searching for good etf databases, as i am always seeking for etf s investing in ...

    maybe someone also could tell me a etf or other investment product which takes a short position in the automobile/carmakers+suppliers sector???

    kind regards
  2. Arcap


  3. I never expressed an opinion on whether these buggers are worthy. I simply pointed the OP to a resource and an example.

    Personally wouldn't touch an ETF with a 10ft pole...
  4. It´s about time for independent rating agencies...

  5. Thanks very much for the link. Very useful for my purpose.

    I would like to understand how 2x and 3x work. I mostly sell naked put or sell covered call. Would also like to undersrand margin requirements for these products,Thanks
  6. Arcap


    No problem, I'm glad it helps. I would have to really advise a great deal of caution on the 2x and 3x ETF vehicles. At a minimum, make sure you know how they function in great detail. I don't claim to know the exact nature of how they function, but I am assuming many use either options, swaps, futures etc where they can often have significant moves related to implied vol changes, time decay etc. It is NOT a simple 1% change here equates to 2% change on the 2x. That is their objective, but they often will not trade on an exact percentage or ratio basis, or even close to it in some cases from my experience. You will often find the levered vehicles underperform substantially under many circumstances. Again, I am not claiming that I know much about them and the specifics under the hood, I am just making assumptions on what I have observed over the handful of times I traded them. For what it is worth, I don't anymore for that reason. Unless you are cash strapped with very strong convictions about a short term directional move, they can be subpar choices for exposure. Just keep up your research and I am sure somebody with greater experience than I will chime in here with some details. Best-
  7. Arcap


    And a firing squad of taxpayers chosen by lottery to take care of the old ones........

  8. Thanks for your reply. I will not jump into these products without knowing much. Thanks for your caution. Any good book on ETFs
    #10     Sep 22, 2009