Thursday, December 04, 2008 5:37:02 AM
Careful with some of those ETF's...check them out thoroughly first about how they respond to the market...
Tracking Trouble for the Triple-Levered ETFs
Thursday December 4, 1:44 am ET
By Paul Kedrosky
Paul Kedrosky submits: I’ve written here before about my general dismay with triple-levered exchange-traded funds -– I might have called them basement financial bomb-building kits, but I don’t recall … -– and so I was caught by this graphic in a new Bespoke Premium report.
Neither the triple-levered bullish or bearish ETFs are anywhere close to the daily performance of the underlying index, which is the Russell Energy. And that’s not the only sector with massive (levered) tracking errors.
Tracking Trouble for the Triple-Levered ETFs
Thursday December 4, 1:44 am ET
By Paul Kedrosky
Paul Kedrosky submits: I’ve written here before about my general dismay with triple-levered exchange-traded funds -– I might have called them basement financial bomb-building kits, but I don’t recall … -– and so I was caught by this graphic in a new Bespoke Premium report.
Neither the triple-levered bullish or bearish ETFs are anywhere close to the daily performance of the underlying index, which is the Russell Energy. And that’s not the only sector with massive (levered) tracking errors.
Cash is King until further notice!!!
My comments on companies are usually my opinion of long term success (years). The PPS may go up or down greatly in the meantime depending on the number of greedy suckers with money.
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