5 ETF Ways To Earn Quick Profits As S&P 500 Touches 3,300

Extending last year’s rally, Wall Street has been hitting a series of record highs with the S&P 500 breaching the 3.300 level for the first time. The latest rally has been powered by Q4 earnings optimism and the initial U.S.-China trade deal.

Per the terms of the phase-one trade deal signed by both the countries, China has agreed to purchase an additional $200 billion ($52.4 billion worth of energy, $32 billion in agriculture, $37.9 billion in services and $77.7 billion of manufactured products) of U.S. goods and services over the next two years. In return, Washington agreed to cut half the tariffs on $120 billion of Chinese products from 15% to 7.5%. Additionally, approval of a new trade deal between the United States, Mexico, and Canada by the Senate supported the stocks.

Additionally, the Fed’s accommodative interest rate policy and a resilient domestic economy have been driving stocks higher. Further, a technology surge is adding to the strength.

How to Play?

Investors can tap this opportunity by going long on the index. There are a number of leveraged products in the market that offer multiple exposure to the index through the use of swaps, options, futures contracts, and other financial instruments. Below we highlight those and some of the key differences between each.

PortfolioPlus S&P 500 ETF (PPLC - Free Report)

This ETF offers 1.35 times (1.35x) exposure to the index and is the cheapest choice in the large-cap leveraged space, charging just 32 bps in annual fees. It has accumulated $27.4 million in its asset base and trades in a small volume of 5,000 shares a day on average. The fund has risen 3.8% so far this year.

ProShares Ultra S&P500 ETF (SSO - Free Report)

This is the most popular and liquid ETF in the leveraged space with AUM of $3 billion and average daily volume of around 1.4 million shares. The fund seeks to deliver two times (2x) the return of the index, charging investors 0.90% in annual fees. It has gained 5.5% so far this year.

1 2
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.