Security Trading Analytics

 Posts On Single-Stock ETFs and Modeling Buy-Sell Decisions My personal blog, Security Trading Analytics, aims to empower visitors who seek examples and demonstrations of quantitative methods for tracking, analyzing, and projecting security prices.   Another blog goal is to present methods and resources that are practical and useful for individuals and small consulting practices that wish to improve their trading, investing, and analysis skills via quant methods.  Additionally, my blog does not shy away from disruptive stances, such as for single-stock leveraged ETFs. This post highlights a recent Security Trading Analytics post titled “Should I Trade Single-Stock Leveraged ETFs?”.  You can learn here about the origins of single-stock ETFs for public trading in the United States.  Around the date that single-stock ETFs initially became available for public trading in July 2022, the Securities and Exchange Commission (SEC) Office of Investor Education and A...

 Should I Trade Single-Stock Leveraged ETFs? This post examines a set of seventeen single-stock leveraged ETFs that are tracked from their inception through April 30, 2026.  An additional set of seventeen underlying securities is also tracked to help you appreciate how underlying securities can provide important clues about when to buy and sell single-stock leveraged ETFs. A single-stock leveraged ETF is based on an individual stock instead of a basket of securities.  Unlike traditional ETFs, single-stock leveraged ETFs do not have built-in diversification.  If you feel uncomfortable about managing a collection of individual securities that complement one another, then you should avoid single-stock ETFs in favor of traditional ETFs, such as  SPY, QQQ, and DIA, which offer broad diversification. Because many single-stock ETFs employ leverage, they are best suited for short-term trades during periods of rapid price acceleration.  They can also be hazardous: d...

  What are Single-Stock ETFs and Should I Invest in Them? Single-stock ETFs are different than traditional ETFs.  Traditional ETFs offer a single security that tracks a collection of stocks,  but the collection of stocks can be bought and sold like a single security.  The collection of stocks underlying a traditional ETF supports diversification and thereby mitigates the risks associated with any one stock in the collection.  Single-stock ETFs are based on just one stock, and they do not provide the benefit of diversification available from traditional ETFs. ETFs can be geared or not geared.  A geared ETF aims to return a price change that is 1.5, 2, 3 or some other multiple value on the ETF’s price change during a day.  Therefore, if an ETF’s price change is +2 percent and the gear ratio is 2,  the geared ETF’s price rises by 4 percent on that trading day.  In contrast, if an ETF’s price change is -2 percent on a trading day and the gear rat...