Inverse gearing reflects a multiple of the inverse trend of each fund's underlying Energy Index, tracking oil, natural gas or large cap companies active in the exploration and production of oil and gas
Aiming at returns over one day, the funds, invested in futures contracts, will not provide a geared inverse return of the underlying index’s cumulative return for periods greater than a day and all fund managers emphasize that the funds are “daily trading tools for traders and similarly sophisticated investors to express short-term market views and manage daily trading risks”
ETNs, offered by MicroSectors™ are distinct from ETFs as senior, unsecured, unsubordinated debt securities that provide investors with exposure to the total returns of a chosen index
As benchmark of the selection, Vanguard Energy ETF
For a summary of benefits, risk exposure and tax treatment of ETNs and Futures ETFs, check details in Broad Commodities Futures
By controlling for performance and volatility of the funds over short time frames, shifts in market anticipations will be highlighted
Select short time frames - top right tab - from one week on, to magnify market trends and shifts in market anticipations
Momentum signals trends of 5-day average against a 20-day average