- 06/22/2020 at 9:24 am #79090NicolasblidiParticipant
I would get out of those as lots of selling would be expected…06/22/2020 at 6:12 pm #79095DWoodsParticipant
I sold both today. I bought UGL with my UGLD holdings and put my ZIV balance into TQQQ (SPXL).
I think this is a sign that the market will continue to delist more leveraged ETNs and ETFs this year. They dont want the average retail investor outperforming the big money robbing financial firms anymore.
The March crash made instant millionaires out of some lucky TVIX holders too. The big guys hate that.06/22/2020 at 11:43 pm #79096ikoskelaParticipant
Thanks for sharing this.06/23/2020 at 8:14 am #79097Alexander HornKeymaster
We’re currently looking at the different options and going to post a note over the weekend – in advance of the next rebalancing.06/23/2020 at 9:52 am #79098StefanMParticipant
Would you suggest selling out of UGLD positions urgently and leaving proceeds in cash (or another leveraged GLD product)?06/23/2020 at 1:03 pm #79099ikoskelaParticipant
I sold this morning and I’m leaving it in cash just because we don’t much time left in the month. Just remember to limit order, not market, if it goes OTC.06/23/2020 at 1:15 pm #79100
There is not really a replacement for the 3x leveraged UGLD. We may switch to a 2x leveraged version of the leveraged UIS strategy using SSO, UGL and UBT. This works well and the ETFs are very liquid.
The MYRS strategy could be continued using VXZ short positions instead of ZIV and UGL UBT as hedge. This works even a little bit better than with ZIV as VXZ has not these rebalancing losses of inverse ETFs, but shorting ETFs is probably not possible with many trading accounts.
You can keep your positions until end of the month. We will inform before the rebalancing on how we will continue.
Regards Frank06/23/2020 at 9:58 pm #79104Mark VincentParticipant
What is the difference between UGL and UGLD. They are both 3 times leverage but the returns are different? More Blunt why is UGL not a good choice to replace UGLD.
Note: Does anyone know why they are closing them?06/24/2020 at 1:33 am #79107
UGL is only 2x leveraged Gold. UGLD is the only 3x leveraged gold ETF06/24/2020 at 3:03 am #79108marcelParticipant
Hi Frank, hi Alex,
it would be great if going forward there would be the option to still replicate the current versions of the Universal Investment Strategy and Max Yield Strategy using futures, e.g. by creating a synthetic UGLD version (that is the daily 3x of GLD) instead of having to follow a workaround using UGL or the like.
Marcel06/24/2020 at 6:26 am #79109
Anyway there is no problem to just buy 1.5x the UGLD dollar amount of UGL to have the same effect. Also you can just buy 3x the amount of forex gold XAUUSD to replace UGLD06/24/2020 at 4:44 pm #79120Mark VincentParticipant
Thanks Frank I missed that. UGL in most strategies outperforms UGLD. And UGL has outperformed SPXL over the last couple of years. What is the danger in just using UGL? A better question is what is danger in mixing different leverage ratios if the results are better in the backtests and the optimizier looks good?06/24/2020 at 5:10 pm #79122PatrickKeymaster
Note that UGL does send Schedule K-1 forms for taxable accounts, which can add a little time and complexity when filing taxes. That should not apply to IRA and 401k accounts.06/25/2020 at 5:27 am #79126mkParticipant
As EU citizien I cannot trade the non-UCITS-ETFs a longer time :-(
Therefore I switched to https://www.wisdomtree.eu/de-de/etps/commodities/wisdomtree-gold-3x-daily-leveraged
But the liquidity/trading volume is not comparable to the originals.06/25/2020 at 9:20 am #79127
Don‘t forget that the most liquid with small spreads and low fees is forex gold XAUUSD. Also it is traded nearly 24h/day. Normally it is no problem to buy 3x the UGLD $ amount because of low margin requirements.
- You must be logged in to reply to this topic.