The two choices here are: PowerShares DB Gold Double Long ETN (DGP) and PowerShares DB Gold Double Short ETN (DZZ). Since the inception of the ProShares funds, these DGP and DZZ have slightly outperformed their counterparts.
Volume is ample in all four leveraged funds. In the past year, the leveraged long funds have delivered double the return of gold. The leveraged short funds, meanwhile, have delivered less than 2X the inverse, due to compounding.
As I've explained in the past, leveraged ETFs and ETNs should not be held as long term positions and are appropriate only for advanced investors. Additionally, like DGL, these products are currently under the scrutiny of regulatory bodies due to their use of futures and derivatives to meet their underlying investing goals.
Short. PowerShares also offers a short ETN, PowerShares DB Gold Short ETN (DGZ) , which does not use leverage. As the chart on the next page shows, however, it underperformed like the leveraged short funds and failed to deliver the full inverse return.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV