International Gold 3X Bear: Inverse Exposure to Gold
The International Gold 3X Bear (UGLD) is an exchange-traded fund (ETF) that provides inverse exposure to the price of gold. This means that when the price of gold goes up, the value of UGLD goes down, and vice versa. The UGLD is designed for traders who believe that the price of gold will decline in the future.
The UGLD uses a variety of financial instruments to achieve its inverse exposure to gold. These instruments include futures contracts and swaps. The fund’s portfolio is constantly adjusted to maintain its 3X inverse exposure to gold.
The UGLD is a popular instrument for traders who are looking to hedge their exposure to gold. It is also used by traders who are looking to profit from a decline in the price of gold. However, it is important to note that the UGLD is a leveraged ETF, which means that it can be more volatile than traditional ETFs.
Key Features of the UGLD
* Inverse exposure to the price of gold
* 3X leverage
* Daily rebalancing
* Traded on the NYSE Arca
* Expense ratio of 0.95%
Risks of Investing in the UGLD
* Leverage: The UGLD’s 3X leverage can amplify both gains and losses.
* Volatility: The UGLD can be more volatile than traditional ETFs.
* Counterparty risk: The UGLD uses financial instruments that are subject to counterparty risk.
How to Trade the UGLD
The UGLD can be traded like any other ETF. Traders can buy or sell shares of the UGLD through their brokerage account. The UGLD is a liquid ETF with a tight bid-ask spread.
Conclusion
The International Gold 3X Bear is a popular instrument for traders who are looking to hedge their exposure to gold or to profit from a decline in the price of gold. However, it is important to understand the risks of investing in leveraged ETFs before trading the UGLD.
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