Timika sells TNA 59: While it may be nice that Moody's did not slap a negative outlook on Brazilian bonds, it is also clear investors are acknowledging risks with Brazilian debt and equities.

EWZ resides near 10-year lows while the Market Vectors Brazil Small-Cap ETF (NYSE: BRF) and the Direxion Daily Brazil Bull 3x Shares (NYSE: BRZU) earlier hit all-time lows. Four of the ETFs that have hit 52-week lows to this point in Wednesday's session are Brazil funds and that number does not include scores of diversified emerging markets ETFs also hitting new lows that are heavily allocated to Brazilian stocks. Alas, this is supposed to be interpreted as good news because Moody's did not assign a negative outlook to Brazilian debt, which diminishes the chances of the ratings agency imminently assigning Brazil a junk rating. Perhaps that will change in the future, but it is also highly likely that the future is measured in months or years rather than days or weeks. Assuming the best case scenario, that being Brazil holding on to its investment-grade status, there is still the matter of the country's interest rate policy.


Robert:
It likely receives a mandatory invitation to a reverse split party.

Dee:
All told, the Direxion Small Cap Bull 3X ETF is a high-risk, high-reward play that is not suitable for everyone and is best utilized only by investors with experience in leveraged risk.

Raylene:
Leveraged ETFs make excellent complements to a more balanced portfolio, but they don't make sense as major components due to the added risk.

Deja:
Since TNA is focused exclusively on small caps on U.S. exchanges, it doesn't carry the kind of diversification that many other ETFs or mutual funds provide.

Alisia:
Leveraged ETFs have grown in popularity, but they exaggerate the market risks of traditional equities.

Meg:
These other securities can include futures contracts, options, equity caps, floors and collars, swap agreements, short positions, reverse repurchases and other ETFs.

Hannelore:
It's investment adviser, Rafferty Asset Management LLC, creates long positions by investing in a combination of small-cap index and other, leveraged equity securities.

Ronni:
TNA isn't the most expensive ETF in its category, but it isn't going to be mistaken for a Vanguard fund either.

Shemika:
These differences can also be exacerbated by brokerage fees, which are not included in the expense ratio.

Nisha:
No single company's stock comprises more than 1% of the index.

Smallcap Bull 3X Direxion (AMEX:TNA)
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