The New ETFs to provide leveraged and inverse exposure to gold and silver

ProFunds Group launched on December 3 the first exchange-traded funds in the U.S. to provide leveraged and inverse exposure to various commodity and currency markets. This is for the first time such products are available in the ETF format. There are other exchange traded products, known as Exchange Traded Notes (ETNs) that provide leveraged and inverse exposure to various commodity and currency markets.

However, ETNs are bonds and as such carry a risk of default from the issuer; a lesson that holders of Lehman backed ETNs learned the hard way last month. Here are the ETFs:

ProShares Ultra Gold (UGL)
ProShares UltraShort Gold (GLL)
ProShares Ultra Silver (AGQ)
ProShares UltraShort Silver (ZSL)

The four new ETFs have being traded on the NYSE Arca since then.

In the last month, Profunds has launched the eight new ETFs from ProShares on November 25, here are:

Ultra DJ-AIG Commodity (UCD)
UltraShort DJ-AIG Commodity (CMD)
Ultra DJ-AIG Crude Oil (UCO)
UltraShort DJ-AIG Crude Oil (SCO)
Ultra Euro (ULE)
UltraShort Euro (EUO)
Ultra Yen (YCL)
Ultra Short Yen (YCS)

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Financial Bear 3X (FAZ)-Be ready for the next stock markets crash!!!

Sources :

1. Investwithanedge.com: Eight New ETFs from ProShares Began Trading Today, November 25, 2008
2. Yahoo! Finance: ProShares Launches First Short and First Leveraged ETFs Tracking Gold or Silver, December 3, 2008 7:30 am ET
3. Seeking Alpha: ProShares Launches First Leveraged and Short Commodity ETFs, December 4, 2008

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