The underlying index gauges the equities market in Chile, primarily looking at the Santiago Stock Exchange.
Dozens of "inverse" ETFs move in the opposite direction of their underlying index or basket of securities.
" But, he adds, "the fund reflects the composition of its underlying index and the universe of Peruvian equities.
The underlying index to which the options apply, however, is less volatile than an individual stock because it represents a diversified basket of shares.
In an ETF, managers balance the share makeup of the fund so it accurately reflects the performance of its underlying index, charging lower fees.
Tom Lydon, president of Global Trends Investments, says good ETFs have a reasonable expense ratio, a well-diversified underlying index and underlying stocks with lots of liquidity.
Those willing to take the extra risk of individual stocks in an effort to beat the performance of the underlying index, might want to consider using a leveraged etf on the index instead.
Rafael Coven, the adviser to the underlying index for PZD, noted that the poor performance of most renewable energy stocks in 2010 was a major reason why Cleantech Index-based funds (such as PZD) significantly outperformed their peers.
The underlying index gauges the performance of companies stocks in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the U.K. Top holdings include Nestle, HSBC, Novartis, Vodafone Group, Total and BP.
These two scenarios can create an environment where performance expectations of investors may not be met due to the tracking error versus the underlying commodity index that is created.
The ETF only represents the underlying security or index it is designed to mimic.
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The underlying Alerian Natural Gas MLP Index has a current yield of 6.56%.
The weak technical posture of the dollar index is an underlying bullish factor for gold and silver.
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The weaker technical posture of the dollar index is an underlying bullish factor for gold and silver.
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The very weak technical posture of the dollar index is an underlying bullish factor for gold and silver, as was in evidence Tuesday.
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The underlying Solactive Global Oil Equities Index tracks the performance of 25 equal-weighted companies that have shown a high correlation to the spot price of oil.
According to the ETF Finder at ETF Channel, Intel Corp is a member of both the iShares MSCI USA ESG Select Social Index Fund ETF (KLD), making up 1.48% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where INTC makes up 1.83% of the underlying holdings of the fund.
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According to the ETF Finder at ETF Channel, Travelers Companies Inc is a member of both the iShares MSCI USA ESG Select Social Index Fund ETF (KLD), making up 2.07% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where TRV makes up 0.49% of the underlying holdings of the fund.
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The recent weaker posture of the dollar index is a bullish underlying factor for the precious metals.
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The weaker technical posture of the dollar index is also an underlying bullish factor for gold and silver.
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"The transports are the first major index to reflect an underlying change in the market, " Mr. Boockvar said.
The recent strength of the U.S. dollar index is also an underlying bearish factor for the precious metals markets.
The recently improved technical posture of the U.S. dollar index has been an underlying bearish factor for the precious metals.
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Still, the weaker dollar index recently is a bullish underlying force for the precious metals.
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The recent stronger U.S. dollar index has been a bearish underlying factor for the precious metals markets.
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The overall postures of the U.S. dollar index and crude oil remain underlying bearish factors for the raw commodity sector.
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Moreover, our index has greater volatility than underlying benchmark indices.
Instead they return an amount based upon the performance of an underlying equity instrument, be it an index, a hedge fund or even a single stock.
"We expect the choppiness in the data to persist in the near term, but look for the broader underlying trend in both the quarterly national index and the monthly composite-20 index to remain positive, " Chen says.
The weaker dollar index recently has been a bullish underlying force for the precious metals.
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