Series 7: 6.5.3. Comparing Leveraged And Inverse ETFs And ETNs

Taken from our Series 7 Online Guide

6.5.3. Comparing Leveraged and Inverse ETFs and ETNs

Familiarize yourself with the following table about traditional and non-traditional ETFs and ETNs.

	Traditional ETFs	Leveraged ETFs	Inverse ETFs	Traditional ETNs	Leveraged ETNs	Inverse ETNs
Returns	Index return	Multiple of index (2x)	Inverse of index (-x)	Index return	Multiple of index (2x)	Inverse of index (-x)
Tracking Error	yes	yes	yes	no	yes, if held more than a day	yes, if held more than a day
Suitable for buy and hold strategy	yes	no	no	yes	no	no
Suitable for diversified long-term portfolio	yes	no	no	yes	no	no
High expense ratio	no	yes	yes	no	yes	yes
Tax efficient	yes	no	n

+ Read More

More Series 7 Info

What are people saying?

Create an Account

Since you're reading about Series 7: 6.5.3. Comparing Leveraged And Inverse ETFs And ETNs, you might also be interested in:

Series 53 - Bond Purchase Agreement

Series 63 - Suitability

Series 26 - Function One: Personnel Management Activities and Registration of the Broker-Dealer

Series 24 - 4.1.7.1. Unsold Shares of a Public Offering

Series 65 - 9.1.2.3.1 Registration by Qualification

Series 24 - Roth 401(k)

Series 65 - 2.1.1. Common Stock Shareholder Rights

Series 7 - 8.3 Life Insurance

Please Enable Javascript
to view this content!

Site Login

TESTIMONIALS

What are people saying?

In preparation for the Series 7, I began with Kaplan. I tested and did not pass. I then switched to STC materials. I tested and did not pass. I then switched to Solomon and passed! I also used Solomon for the 63 and passed the first time. I highly recommend Solomon's test preparation materials. The question bank was far more extensive than the others and I definitely felt better prepared using Solomon.

Kara S, CLS, Carrollton, TX

I found encouragement along the way from reading other people's testimonials, so payback is to write one of my own. Solomon is the gold standard for customer service. I passed the 66, SIE first tries -- received a 69% on the 7 (failed), but passed on the 2nd attempt. I'm in awe over the outreach I received from day 1 but especially from Jeremy on how to move forward after falling short on the Series 7 - followed his advice - one of which was to get the accompanying videos and passed. Watching/studying the Chapter 5 video had a big impact. I also printed the questions I got wrong that I particularly struggled with while taking the online exams, printed and/or turned them into flashcards, then taped many of them around the house. It forced me to constantly revisit the information and moved me past a superficial understanding. I'll take a messy-looking home for a short time than having to retake a 3 hour and 45 minute exam.

Brook Langston, Everspire. Salt Lake City, UT

Solomon is the BEST!!! Passed the Series 7 on the first try. The lessons are videos and lessons are good. The practice exams are EXCELLENT. Focus on options and muni's. Load up on practice exams and you will be fine. Thank you Solomon!!!

Brandon Collins, Benchmark. Memphis, TN

Within a few months, I passed the SIE, Series 7, 63, 65, & 79 exams all on the first try using Solomon Exam Prep. This material will prepare you for the actual exam. I will say in many instances the practice exams are more difficult than the actual exam. Solomon and the various tracking metrics will more than help you prepare for the rigors of exam day. I highly recommend the practice exams and ability to dive back in to review weak areas. I will continue to use their products and services in the future.

Andrew Ezzat, Bank of America. Tampa, FL.

Just passed the series 7 today! Solomon was a huge help, as I used the practice exams exclusively. When preparing for this exam, make sure to allocate ~70% of your time on compliance, opening accounts etc. Looking forward to passing the series 66. I will continue using Solomon!

Blake Rossman, True Wealth Financial Partners. Fircrest, WA

Used Solomon for my second & third time. First time I used a different company & day of test, I had no idea what I was reading. Second time, I bought Solomon a little too close to my test date, failed but had a higher score. Third Time, used strictly Solomon & passed! Cant thank Solomon enough, will recommend to everyone!

Ashley F, Citi. New York, NY