5 Scary Facts About #ETFs
I read a very interesting piece from Seeking Alpha called “5 Scary Facts About ETFs” which asks the question whether or not ETFs have reached a bubble stage.
The article lists 5 reasons why we should be worrying:
1. ETFs have gone from cheap and simple to expensive and obscure
2. About half of ETFs are losing money
3. Have you looked into the collateral of your synthetic ETF?
4. Synthetic ETFs create conflict of interest issues for investment banks
5. Should you worry about excessive short interest and failed trades?
You can read the full article here.
To learn how to use ETFs (hopefully in a less scary fashion), join us at the ETFs and Indexing Investments day as part of the Asset Allocation Summit Australasia 2012 next year on the 22nd of February.