Short ETFs Are Often A Dangerous Delusion - Unless You Want To Short Them
- ETFs can be structured to provide investment (speculative) vehicles to play the other side of many positive propositions.
- They offer the means of restraining runaway investor enthusiasms over notions that capture the inexperienced investing public's attention.
- But they have to be built from other derivative securities that have their own sophisticated markets with informed, sophisticated players.
- True opportunities for short-structured ETFs usually do not last long, most of the time they fight a losing battle.
- That makes them a dangerous longer-term (multi-months to years) speculation, not an investment.