Basic tutorial: Exchange Traded Funds (ETF’s)

What’s is ETF’s in stock market?

Exchange Traded Funds (ETF’s) all have an underlying asset that they track and range from:

• Basket Holdings
• Bonds
• Commodities
• Futures,
• Indexes,
• Foreign Currency

EXCHANGE TRADED FUNDS (ETF’S) PRICING RELIES ON ITS UNDERLYING ASSET AND NOT THOSE BUYING SHARES OF THE ETFs.

ETF’s AND LEVERAGE

Exchange Traded Funds (ETF’s) all have ranges in which they try to deliver a return on the underlying asset for.

1X: Follows the Underlying asset on a 1:1 basis
If its underlying asset changes 1% so will the ETF

2X: Follows the Underlying asset on a 2:1 basis
If its underlying asset changes 1% the ETF will change 2%~

3X: Follows the Underlying asset on a 3:1 basis
If its underlying asset changes 1% the ETF will change 3%

4X: Follows the Underlying asset on a 4:1 basis
If its underlying asset changes 1% The ETF will change 4%~

LEVERAGED ETF’S ARE NOT MEANT TO BE HELD LONGTERM

INFORMATION:

Why Leveraged ETFs Are Not a Long-Term Bet

What is a Leveraged ETF? – Decay, Risk & Volatility

ACCESSING ETF LISTS WITHIN THINK OR SWIM

Within Think or Swim you can access the list of ETF’s from the watchlist section click the dropdown and perform the following actions.

All ETF’s
Watchlist -> Public (% – F) -> All ETF’s

Triple Leveraged ETF’s
Watchlist -> Public (R- W) -> Triple Leveraged ETFs

UNDERLYING ETF ASSET(S)

To check what the underlying asset(s) are on an Exchange Traded Fund (ETF):

1. Use this link it will take you to Fidelity https://research2.fidelity.com/fidelity/screeners/etf/landing.asp
2. In the top right corner input your ticker/symbol ID and hit enter.
3. Scroll down until you find “Portfolio Composition” on the web page.
4. Depending on what you are looking at, the ETF may have basket holdings of multiple tickers, or rely on a Commodity which can be tracked VIA Futures.
5. To access a commodity within Think or Swim

Go to your watchlist dropdown

Watchlist -> Public (% – F) -> FUTURES

6.) Find the correlating symbol and pull it up.

 ETF’S LIST GROUPED WITH UNDERLYING ASSET

Below is a link to a Google Spreadsheet containing ETF’s linked into groups (Commodities, Equities, Volatility, ETC)

Saving you time for finding what you need.
This contains 1X, 2X, 3X Leveraged ETF’s.

ETF’s Leverage & Asset Class

 FINAL NOTE

DO YOUR OWN DUE DILIGENCE (DD). IF YOU DECIDE TO BUY OR SELL ANYTHING, THAT IS ENTIRELY YOUR DECISION AND YOUR DECISION ALONE

ASKING INTRADAY IF “ITS TO LATE TO GET INTO ” OR “IF IS A GOOD BUY” WILL RESULT IN ENFORCEMENT ACTION. IF YOU WANT TRADING TO WORKOUT LONGTERM YOU SHOULD NEVER RELY ON SOMEONE ELSES OPINION.