Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: axial who wrote (117851)	2/16/2009 11:56:45 PM
From: Cogito Ergo Sum	Read Replies (2) \| Respond to of 206121

Jim, contango and backwardation on leveraged ETFs. I think that is valid on those that use futures as the underlying theme like HBU/HBD, HOU/HOD... Actually the point you brought up made me think 'yes' it should apply to any ETF using futures.. but experience tells me HGU follows the stocks.. not the metal.. The 2X leverage does not need to be gained by playing futures.. although it can be. They can be using options too I guess.. TBS

To: axial who wrote (117851)	2/17/2009 12:25:57 AM
From: Kayaker	Read Replies (1) \| Respond to of 206121

[[ Which is why many people are now "getting it" and switching out of leveraged ETF's into "tracking" ETFs. ]] Which is why I bought some XEG last Thursday and I won't be buying anything that starts with an 'H'. On BNN the other day, Amanda Lang mentioned that she would be having the CEO of Horizons Betapro on Commodity Report this week. It sounded like they have been getting LOTS of emails from folks wondering what the f is going on with HOU. Unfortunately, the last time the CEO of Horizons Betapro was on BNN to explain the leveraged ETFs, it sounded more like a sales pitch. One of the big problems is that folks call in to one of the investment manager guests about HOU and rarely get properly warned about negatives. Call me a cynic, but where is the oversight of 2x/3x ETFs? How does anyone know if they are properly rebalanced everyday?