ETF
Hedging With Spread ETFs
With that basis of understanding, most of what you might read about these funds will be negative but frankly, there is no way to know at this point what utility these might offer. Some people will use them very successfully for short-term speculations, some people will badly misuse them, but it is possible that there will be some hedging benefit to these funds. The previous sentence will be true just as it is true that some people get one of the same three results using the already existing levered ETFs. This means that the funds are not bad funds but will clearly be inappropriate for most people. Still they will find their niche.
Anyone thinking they might be interested in using these funds for speculation or hedging would be well advised to let the funds show what they can do. This is always a good idea for funds that are not plain vanilla baskets of stocks.Readers Also Like:
TheStreet Premium Services
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn MoreTo begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,454.83 | 1,317.82 | 2,837.53 | 17.45 |
Oil *
107.26
|
|
DOWN
74.92 |
DOWN
2.86 |
DOWN
1.85 |
DOWN
0.14 |
10 Yr
1.74%
SPDR Gold
152.68
|
|
-0.60%
|
-0.22%
|
-0.07%
|
-0.80%
|
Data delayed 20 minutes |
Connect with TheStreet