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Don Dion
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Don Dion (donalddion@gmail.com, @DRDInvestments) is the owner and Chief Investment Officer of DRD Investments, LLC, based in Naples, FL. and Williamstown, MA., a family office focused on managing a long/short hedge fund, real estate assets, venture capital, and various other financial assets for... More
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Drd investments, llc
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Don Dion's IPO Analysis
My book:
The Ultimate Guide to Trading ETFs
  • Natural Gas ETF: Hazardous Trading 1 comment
    Aug 19, 2009 11:18 AM | about stocks: UNG

    The latest chapter of the U.S. Natural Gas (NYSEARCA:UNG) saga raises an important point about ETF trading. The halt in UNG's creation process has caused the fund to trade at a ridiculous 11% premium and the fund should be ashamed to call itself an ETF.

     

    It is the creation and redemption process that makes ETFs unique, and stripping them of this ability is like gutting a central premise. Wait…READ MORE

    Stocks: UNG
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  • Bill L.
    , contributor
    Comments (691) | Send Message
     
    Again, thanks Don for bringing these issues to the forefront. And Again, people don't know what they are buying half the time. Many of the commodity ETF don't actually own the underlying, and just have a portfolio of open swap contracts, without disclosing counter party risk.

     

    I swear, all those wall street wizards who lost their jobs creating mortgage backs security tranches to pass junk off as AAA, must have just gotten hired creating new ETFs... Buyers beware.
    19 Aug 2009, 11:49 AM Reply Like
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