The market volatility this year has put to bed many levered funds. The investors, financial advisors and portfolio manager currently invested in those funds tend to wonder:
“How do you adjust your portfolio in the wake of these redemptions and still maintain the type of diversification you want?”
Other websites have documented these liquidations well:
- ETF.com Bloodbath In Leveraged ETFs
- Seeking Alpha: Direxion cuts leverage on 10 funds, closes eight funds
We will not go over the some of the more advanced topics such as:
- Rebalancing your portfolio when one of your funds closes
- Managing sudden capital gains distributions
I will walk through the top 9 recently closed funds here and document ETF / ETN alternatives that are not levered and haven’t closed yet.
Here’s and example of $100 of DVHL vs $100 of IYLD and $60 of MLPX
Clearly we can see the relative price of $DVHL as it underperforms IYLD and MLPX dramatically in the sell-off. Here’s a different view of the same price returns data above: the difference in returns of $IYLD and $MLPX vs $DVHL.
Look at our top 9 replacements for the levered funds which are closing / have closed
You can view each of these funds at https://app.portformer.com and sign up for a free 7-day trial
Thank you for your time. Please click on the links above to explore the analysis directly in Portformer.