3 x ETFs, the Latest hit

The 3 x ETFs are the newest things to hit the market. They provide you with huge returns or losses when you compare them with regular stocks, so should you use them?

The answer is it depends.

If you are interested in getting into strong companies for the long term, I wouldn’t look at them. Because they are so new you don’t know how they will perform in the long run. The only way to tell is to watch them over 10 or 20 years.

If you are interested in making a nice short term profit like me then 3 x ETFs can be a great way to accomplish that. Because they offer so much leverage the return you can make is much higher on these funds then normal ETFs.

And the risk can still be managed by using things as stop losses and risk management. I have to say I haven’t dipped my ties into any of these, yet. But I will be interested to see how I can use them to increase my returns in the market.

If you are interested in doing your own research here are a few triple leveraged ETFs you can look at

FAS – 3x long financials

ERX – 3x Long Energy

BGU – 3x long large caps

Remember that these investment can be very risky as well, so before you get into them make sure that you know what you are doing and have had experience trading basic stocks before even thinking about trading 3x ETFs.

These are really investments that are built for people who know what they are doing and know how to cut their losses short when they are wrong. If you do invest into a 3x ETF remember that there is always some risk involved, but there is also some opportunities to make money.