JWG

Bears and Big Gains

Betting on the VIX is betting on a derivative of a derivative of a....

This isn't investing, it isn't even speculating, it's just gambling. I'm not opposed to somebody gambling, but they ought to be clear about it.

And there is more, that Roger did not mention: ETN risk. An ETN depends on the issuing bank. It's *NOT* an ETF.

If Barclays rolls over and croaks, your investment is gone, as far as I understand it. There are no underlying assets; you're just placing a bet at the casino, and if the house goes bust, you don't get your winnings, or even get your stake back.

Like all banks in the UK, and indeed elsewhere, one has to ask whether Barclays will be around and honor their commitments. These are perilous times, for banks.

JWG