WC Whiner

International Securities Exchange Launches Natural Gas Index

Who needs an ETF?

Buy at-the-money calls. Sell at-the-money puts. Voila, you are long index futures. Index futures are like an ETF, except better. One, you don't pay fees, aside from commissions (and the ISE tightens markets like nobody's business). Two, you conserve margin, meaning you get favorable (implied) financing and even make interest on any cash balance you hold, as long as your broker doesn't suck. Three, at cocktail parties, you get to tell strangers that you have a synthetic long futures position in an index.

ETFs are great when you can buy VTI for 7 bps. Something like this I guarantee will charge you 40, at which point there is no reason to own it.