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ETF Leaders and Laggards for Q3 2013

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Laggard #1: Factor Shares 2X: TBond Bull/S&P 500 Bear

FactorShares185Q3 Total Return: -20%

Just seeing the word “leverage” when discussing ETFs gives me the willies.

The Factor Shares 2X: TBond Bull/S&P 500 Bear (FSA) is, in the company’s words, “a leveraged spread ETF designed for investors who believe long-dated U.S. Treasuries will increase in value relative to large-cap U.S. equities in one day or less.” Essentially it’s going long on U.S. Treasuries and short on the S&P 500.

How’s that working out so far?

Well, since its inception in February 2011, the FSA is down 56% on an annualized basis through June 30. In the past three months, FSA’s total return is -20%.

It’s hard to believe, but FSA actually has $880,000 in net assets. I’m surprised it’s not less. Not surprisingly, it’s on the ETF Deathwatch for September.

As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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