Comments on: Not All ETFs are Good Investments http://investing-school.com/myth/not-all-etfs-are-good-investments/ To Learn as Much as We Can About The Complicated Subject of Investing! Thu, 02 Feb 2012 22:37:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: BankruptcyAccess.com http://investing-school.com/myth/not-all-etfs-are-good-investments/comment-page-1/#comment-467 BankruptcyAccess.com Mon, 05 Jan 2009 23:55:05 +0000 http://investing-school.com/?p=203#comment-467 <strong>Bankruptcy and Debt Carnival #18- Online Now!...</strong> Welcome To The 18th Bankruptcy & Debt Carnival! Jan. 5th, 2008 *Blogs presented according to subject* Bankruptcy Michael Bass presents What is a Junk Debt Buyer? posted at Debt Prison, saying, “Often, original creditors are selling debt... Bankruptcy and Debt Carnival #18- Online Now!…

Welcome To The 18th Bankruptcy & Debt Carnival!

Jan. 5th, 2008

*Blogs presented according to subject*

Bankruptcy
Michael Bass presents What is a Junk Debt Buyer? posted at Debt Prison, saying, “Often, original creditors are selling debt…

]]> By: Carnival of Personal Finance: Fairy Tale Edition at Clever Dude Personal Finance & Money http://investing-school.com/myth/not-all-etfs-are-good-investments/comment-page-1/#comment-460 Carnival of Personal Finance: Fairy Tale Edition at Clever Dude Personal Finance & Money Mon, 05 Jan 2009 13:35:54 +0000 http://investing-school.com/?p=203#comment-460 [...] about identifying investment risk, stop loss orders, and building lazy ETF portfolios (remember, not all ETFs are good investments). But before he can really delve into the stock market, he needs some good tips for new stock [...] [...] about identifying investment risk, stop loss orders, and building lazy ETF portfolios (remember, not all ETFs are good investments). But before he can really delve into the stock market, he needs some good tips for new stock [...]

]]> By: MoneyNing http://investing-school.com/myth/not-all-etfs-are-good-investments/comment-page-1/#comment-445 MoneyNing Sun, 04 Jan 2009 07:08:08 +0000 http://investing-school.com/?p=203#comment-445 Kevin: Thanks for the insight! I was wondering about shorting both leveraged ETFs as a good strategy, but that might be too complicated for the average investor (shorting a leveraged bear fund). Monevator: I really hope that the ETFs won't become another set of mutual funds with high fees down the road!! Mark: Definitely agree with you about the massive losses as some of those funds are down big this year. I guess if you know what you are doing, these funds can give you quick gains but we all know what happened to people that leveraged to no end! Kevin: Thanks for the insight! I was wondering about shorting both leveraged ETFs as a good strategy, but that might be too complicated for the average investor (shorting a leveraged bear fund).

Monevator: I really hope that the ETFs won’t become another set of mutual funds with high fees down the road!!

Mark: Definitely agree with you about the massive losses as some of those funds are down big this year. I guess if you know what you are doing, these funds can give you quick gains but we all know what happened to people that leveraged to no end!

]]> By: Rich Life Carnival #26 | Rich Life Carnival http://investing-school.com/myth/not-all-etfs-are-good-investments/comment-page-1/#comment-435 Rich Life Carnival #26 | Rich Life Carnival Sat, 03 Jan 2009 05:57:54 +0000 http://investing-school.com/?p=203#comment-435 [...] School presents Not All ETFs are Good Investments posted at Investing School, saying, “Be careful out there and know what you are investing in! [...] [...] School presents Not All ETFs are Good Investments posted at Investing School, saying, “Be careful out there and know what you are investing in! [...]

]]> By: Mark http://investing-school.com/myth/not-all-etfs-are-good-investments/comment-page-1/#comment-420 Mark Thu, 01 Jan 2009 18:17:18 +0000 http://investing-school.com/?p=203#comment-420 Leveraged ETF's should only be used for trading purposes and never held long term in a portfolio. They also have the potential to expose you to massive losses. Leveraged ETF’s should only be used for trading purposes and never held long term in a portfolio. They also have the potential to expose you to massive losses.

]]> By: Monevator http://investing-school.com/myth/not-all-etfs-are-good-investments/comment-page-1/#comment-419 Monevator Thu, 01 Jan 2009 09:55:59 +0000 http://investing-school.com/?p=203#comment-419 The fees are creeping up with some of the odder ETFs out there, too. The fees are creeping up with some of the odder ETFs out there, too.

]]> By: Kevin White http://investing-school.com/myth/not-all-etfs-are-good-investments/comment-page-1/#comment-417 Kevin White Wed, 31 Dec 2008 23:23:42 +0000 http://investing-school.com/?p=203#comment-417 Yup, leveraged ETFs, whether they're long/bullish or short/inverse/bearish are NOT good long-term plays. Buying an inverse NON-leveraged ETF and a regular NON-leveraged ETF that both cover the same market/index simultaneously would get you close to even/breakeven over a period of time. Buying an inverse LEVERAGED ETF and a regular LEVERAGED ETF that cover the same index simultaneously is virtually guaranteed to be a losing strategy over time. Both the long AND the short will lose ground. If one is up and the other is down, the one that is down will be down more than the one that is up, over time. But it's also probably they will BOTH be down over time. This of course means SHORTING both Leveraged ETFs in a margin account is a *relatively* low risk strategy that is virtually mathematically guaranteed to make money. Bottom line, do your homework people. I own a couple of non-leveraged ETFs as long-term investments. I also make small day trades on occasion with leveraged ETFs (2X and the new 3X ones), but I never mix the two up. Investing and trading are very different things. Yup, leveraged ETFs, whether they’re long/bullish or short/inverse/bearish are NOT good long-term plays. Buying an inverse NON-leveraged ETF and a regular NON-leveraged ETF that both cover the same market/index simultaneously would get you close to even/breakeven over a period of time. Buying an inverse LEVERAGED ETF and a regular LEVERAGED ETF that cover the same index simultaneously is virtually guaranteed to be a losing strategy over time. Both the long AND the short will lose ground.

If one is up and the other is down, the one that is down will be down more than the one that is up, over time. But it’s also probably they will BOTH be down over time. This of course means SHORTING both Leveraged ETFs in a margin account is a *relatively* low risk strategy that is virtually mathematically guaranteed to make money.

Bottom line, do your homework people. I own a couple of non-leveraged ETFs as long-term investments. I also make small day trades on occasion with leveraged ETFs (2X and the new 3X ones), but I never mix the two up. Investing and trading are very different things.

]]> By: Sandy http://investing-school.com/myth/not-all-etfs-are-good-investments/comment-page-1/#comment-416 Sandy Wed, 31 Dec 2008 23:15:00 +0000 http://investing-school.com/?p=203#comment-416 I just saw some guy at CNBC talk about the same thing today after the close so great timing! He was talking about the DIG and DUG ETFs but same idea! It's very dangerous out there and thanks for the heads up! I just saw some guy at CNBC talk about the same thing today after the close so great timing! He was talking about the DIG and DUG ETFs but same idea! It’s very dangerous out there and thanks for the heads up!

]]>