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ETFs with Credit Risk

|Includes: AIG, BAC, FAZ, IYF, JPM, SKF, The United States Natural Gas ETF, LP (UNG)

Investors should beware of the increasing number of ETFs that use derivative contracts to achieve investment objectives. While the use of swaps has helped many ETF issuers provide investors with exposure to previously inaccessible regions of the market, these ETFs layer another dimension of risk onto already-concentrated investment objectives.

 

Before investing in ETFs like U.S. Natural Gas (NYSEARCA:UNG) or Direxion Daily Financial Bear 3X (NYSEARCA:FAZ), investors must…READ MORE