tradetime

SRS: The Leveraged ETF Witch Hunt Continues

Rather than waste money investigating the likes of ProShares whose information as you point out is there for anyone who bothers to look, perhaps someone should investigate the law firm who attempts to file such a lawsuit, surely such a lawsuit is far more mis-leading and given the extract assuming it is correct (since it came from the press) demonstrates some significant level of negligence in their due diligence.

Friday Roundup: Commodities, Emerging Markets

Thank you as always, the roundup and insightful and amusing commetary is always a pleasure to read.

The OIL ETF Disappoints Investors as a Crude Tracking Instrument

I agree there are issues with all these types of products, but aren't most commentators comparing apples with.....well something other than apples.

You buy an ETF such as OIL, USO, whatever, but then you compare to the spot price of oil, tbk none of these products claim to track the "spot price" (I could be wrong on that ) What I mean is say you want to play the Crude rise pure and simple, ie not buying Exxon or other companies, but crude itself, how do you do it,

a) Buy the physical commodity ie 1000 barrels of oil and lock them in your garage, (not exactly practical)
b) As someone said get a futures account and buy futures, but are you actually, apart from a management fee, any better off, isn't the whole problem the cantango, which will hit you trading futures, just as it hits many of these which are also trading.....futures...

Whilst it is right that authors such as yourself highlight for the inexperienced that these things might not perform the way you expect, in dramatic fashion, the fact remains that comparing them to the change in the spot price between say Jan and June is not really resonable. Even for a futures trader, the only way is to estimate where the price will be x months out and buy that contract, then you will due to the contango be buying it at a higher than spot price.

Tuesday Outlook: Commodities, Emerging Markets

Likewise, your commentry is always welcome.

Elements MLCX Gold ETN Currently at 1,000% Premium: Sell Now

Thanks for that, I don't own them but it alerts me to keep a closer eye on these things.

Oil ETFs and ETNs: More Complicated Than You Think

Have you looked at USL, it's run by the same person / people as USO but invests in a 12 month range of contracts, if you compare over long term with USO on a percentage basis I think you'll find it performs much better in contango

How Oil ETFs Are Stacking Up Year to Date

Thanx for that summary, I have been meaning to sit down and figure this out. Just one point, DXO is not an ETF, it is an ETN, this can make a difference, especially in the current climate of banking woes.