I say gamblers because I’m talking about leveraged funds that
can gain or lose large sums of money in a very short time. Casino stuff. (But
I’ll close this note with a reference to milder funds risk-averse
investors might like.)
The
ETF screener at the research star Morningstar shows a heavily leveraged
fund as leader of all 1,490 screened: FAS (Direxion Daily Financial Bull 3X
Shares).
Today’s ETF performance screener at Morningstar shows FAS
gained 90.5 in 2013 to date and +157.37 in the last 12 months.
Also, the screen identifies nine ETFs up triple digits in the
last 12 months, ranging from +103.93 to +157.37.
From top down, three of the nine are, after FAS: CURE, URTY,
TNA.
I’ve never recommended a leveraged fund to anyone, so I’m not
suggesting that you own one. I try to know about all kinds of funds—the leveraged
kind are a thermometer that indicates the health of the stock market: They get
hot when the market’s that way.
To cautious investors, I’ve often recommended no-load mutual
funds with no-12b1 charges and ETFs with no sales commission. You’ll probably find
that kind offered by your favorite discount broker.
I like the Morningstar ETF screener for its ability to analyze
all kinds of ETFs, from those that represent the small value, the mid-cap
blend, and the small-cap growth sectors—and much more (including
target-date funds) and Long/Short
Equity funds. Two of those show double-digit gains in both YTD and the last
12 months: ALFA and CSM.
Never
forget this: All investments and savings are gambles on the unknowable future
and thus subject to loss.
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