NEW YORK (TheStreet) -- One of the positive attributes of the ETF industry is that it offers access to segments of the market and sophisticated strategies that would not be easily accessible for the majority of market participants. The most recent product line from the "sophisticated strategies" realm comes in the form of so-called spread ETFs from FactorShares.
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.
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