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.

Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (24122)	12/26/2015 9:03:46 PM
From: JimisJim	Read Replies (1) \| Respond to of 34328

Actually, as I said in another post, the same math that demonstrates EFT/ETN "leakage" came to the conclusion that the only "good" way to play them as "investments" would be to short the ultra-shorts 2X or 3X ones... but I've always felt like that was more work than actually buying/selling my own calls and puts in specific issues... I will admit that the leakage issue is lessened significantly if the ETF/ETN only resets monthly instead of daily, but that is the exception, not the rule for these beasts... and again, I find it easier to deal with my own options trades than "pay" someone else fees to do it, on top of the fees they pay to borrow money to buy the gobs of senior unsecured debt BDCL uses to achieve the 2X leverage performance.... I hate paying fees and in the case of ETFs and ETNs, I not only pay them fees (lower, but similar to the horrible fees on non-index mutual funds), but you also pay commissions for buying/selling the ETFs/ETNs... think about all those fees and how well the fund/note has to do to make up for the automatic drag on your invested dollars!