I am Cletus, the slack jawed yokel.I incorrectly wrote that the Deutsche Bank Currency Harvest ETF is double long and single short. I got that from an article at Index Universe from last May that says double long and single short and that stayed with me.
"The fund will have 2X leverage to the long side, meaning that it will invest twice as much money in the long currencies as it does in the short currencies."
When I read the info card from Deutsche Bank I saw the part about leverage and assumed long 2:1 and short 1:1 based on the previous article.
"the Index will reflect an investment on a 2:1 leveraged basis in the three long futures contracts and in the three short futures contracts."
I did not take that to mean double short but after a call to the fund and rereading it, I was wrong. It doesn't change my thinking but it was a mistake nonetheless. I can't control anyone thinking I am dumb but I can account for myself.
5 comments:
So it is in six currencies x,x,x and y,y,y. X is a long position and y is a double short position. So the funds position is x+x+x+1/2y+1/2y+1/2y (If I get your meaning). I'm going to stop thinking about that before I get a headache. What do you think about another mineral, uranium, that has been steadily appreciating over the last few years? There is a pink sheet Company (urptf) that seems to function like GLD does but for uranium oxide. Does that have a place in portfolio planning? Tom in Indy
tom, double long and double short.
You are thinking of the Uranium Participation Corp which is like GLD and trades in Toronto ticker U.
I personally own Cameco (CCJ) which had a bit of nastiness with a flood at Cigar Lake but seems to be bouncing back. I don't own any uranium for clients it is a white knuckle ride at times and the portfolio generlly captures a lot of the resource effect as it is.
The URPTF you cite is the US ticker to access the fund. If I took a dimmer view of resources I might own a uranium play as concentrated play because i think the names wuld go up a lot during materials rallies but the flipside...
Roger...do you have that link to the Deutsche Bank Currency Harvest ETF ?
Uranium makes sense to me as part of the big picture energy longterm play.
As for the asset mgr industry, I wonder if it will be more and more difficult/expensive for folks to gain access to their personal asset mgr who actually does the research, thinking, and trigger pulling. Asset mgrs today are increasingly middle men. With the pitch given to me and my wife last week,whom they consider "high net worth", I counted three layers of administration: your face to face contact, a large financial complany (like sei), and the mutual funds they use.
the link is in this post where it says info card.
The middle man notion you proffer pertains to brokerages and banks mostly.
There are likely plenty of firms where you live similar to mine that are small buyside shops where the decision maker for the portfolios is right there. Perhaps a friend or colleague does business with one of these places and can refer you to them.
Dbv is going to have problems, I think,if our interest rates stay high relatively speaking while the usd goes lower. This is what is happening this year and accounts for the drawdown. I like the concept of an easy way to enter a low corr asset class and profit from a weaker dollar, but this one could backfire. When I look at a chart comparing the dbv to the dollar, it looks this way, and I wonder how long this situation could keep going. The index will be stuck with going long the dollar, leveraged, as long as it is top three interest rates. What do you think Roger? Is there a link to compare interest rates among the index countries? The index only adjusts 4x per yr.
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