Seeking Alpha
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Many Exchange Traded Funds are designed to track double or triple the return of an index or the reverse of an index. So what happens if that ETF goes negative? Does your brokerage firm send you a bill? This warrants further research on my part, maybe for a more extensive article.

If you are looking for really low priced ETFs, here are a few that trade for less than $5. Shown is the recent price.

  • ELEMENTS CS Global Warming ETN (GWO) $4.92
  • ELEMENTS Rogers Intl Commodity Energy ETN (RJN) $4.84
  • Ultra Financials ProShares (UYG) $3.84
  • Internet Infrastructure HOLDRs (IIH) $1.77
  • B2B Internet HOLDRs (BHH) $0.24

Disclosure: Author does not own any of the above at the time this was written.

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This article has 6 comments:

  •  
    It would be a decent article if the "further research" results were added to the laundry list of sub $5 ETF's. As it is, there's NOTHING helpful here at all.
    Jan 18 05:25 PM | Link | Reply
  •  
    Always look forward to your stocklists.Keep them coming in 2009.
    Jan 18 07:02 PM | Link | Reply
  •  
    I added up to date charts and data for commodity ETFs and ETNs to my website. GLD (Gold), LD (Lead), NIB (Cocoa) and BAL (Cotton) all look strong.

    Take a look at soyouthinkyoucaninvest.../

    I also compiled a complete list of all the commodity ETF and ETNs available to US investors as well as detailed data on each and saved them in a convenient google docs spreadsheet that everyone can view and download.

    Take a look at soyouthinkyoucaninvest...
    Jan 18 08:20 PM | Link | Reply
  •  
    Further research? How about a high school math class?
    Jan 19 10:58 AM | Link | Reply
  •  
    Lists upon lists upon lists don't cut it.
    Jan 19 05:54 PM | Link | Reply
  •  
    the ETFs track the index (or inverse index) by x1 or x2 or x3 of the daily % change. therefore it can only decrease by a % each day and will only approach zero in theory not below or negative.
    Feb 03 06:29 PM | Link | Reply