Meet the 'YINN' & 'YANG' of the ETF World

The video tutorial discusses the Direxion daily Footsie China bear and bull ETFs, known as YEN and Yang. These ETFs are tied to the Footsie China 50 Index and offer leveraged exposure, aiming for three times the daily return or inverse. Leveraged ETFs reset daily, making them suitable for short-term trading rather than long-term investments. YEN and Yang have significant assets and expense ratios, but carry risks like leverage and volatility drag. Bloomberg Intelligence warns about these risks, highlighting the potential for quick losses.

What is the primary index that the YIN and YANG ETFs are tied to?

• S&P 500 Index

• Dow Jones Industrial Average

• Footsie China 50 Index

• Nasdaq Composite Index

How do leveraged ETFs like YIN and YANG reset their leverage?

• Weekly

• Monthly

• Annually

• Daily

What is the main reason leveraged ETFs are not suitable for long-term investments?

• Limited market availability

• High transaction fees

• Lack of diversification

• Daily leverage reset causing returns to decay

What is the approximate asset size of the YIN ETF?

• $330 million

• $150 million

• $80 million

• $500 million

Why did Bloomberg Intelligence give YIN and YANG a red light in their traffic light system?

• Heavy leverage and volatility drag

• High expense ratios

• Limited market exposure

• Poor historical performance