This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top ETF Stories of 2009: Leveraged Funds

The Hippocratic oath of doctors does not extend to the offices of Wall Street, and questions have been raised about the dispensing of these ETF products. Not wanting to be seen as irresponsible drug dealers, brokerage firms are washing their hands of leveraged ETFs before the financial DEA comes knocking. Firms like UBS (UBS) and Ameriprise (AMP) have bowed out of the leveraged ETF business.

Fear of regulation has spread to the ETF industry as well. The U.S. Natural Gas (UNG) ETF recently declined to issue additional shares despite a request for these very same shares only a month before. During the period in between the request and the SEC's response, another financial regulatory authority, the Commodities Futures Trading Comission (CFTC), got involved.

Economic downturns and the collapse of financial bubbles are a breeding ground for finger-pointing. One group that has been targeted with a vengeance are the "speculators." Whether the headline is housing or commodities, the shadowy figures of speculators seem to haunt the recesses of plotlines across the industry. One of the places that speculators seem most at home is the commodities futures markets.

The CFTC is the sheriff in that town and this agency has been monitoring a new bully in the commodities markets. Funds like UNG and U.S. Oil (USO) use futures contracts to track their objectives. These funds have become so popular so fast that they now represent a significant segment of the open interest in these markets.

The CFTC has begun to examine whether these funds could be dictating these commodities markets, rather than tracking them. While upcoming regulation could take many forms, a likely incarnation will be position limits.
7 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
UYG $52.16 6.00%
FAZ $60.45 -10.00%
SRS $55.25 -1.90%
UNG $7.23 -0.96%
USO $8.42 5.40%


Chart of I:DJI
DOW 15,906.41 +246.23 1.57%
S&P 500 1,855.41 +26.33 1.44%
NASDAQ 4,314.81 +47.9730 1.12%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs