9 replies to this topic

[snorkels4]

say??, emerging markets, gold, miners etc ie: ucpix, srpix

[mdwllc]

Four that I have used are: ProFunds, ProShares, PowerShares and Rydex. All four have products that will allow you to be long/short.Personally, I have moved to the ETF's from the funds because I don't care for the entry on either a mid-day or closing basis. Good trading...MDW

[colours]

Is there any downside on the Proshares ETFs such as low liquidity or high commissions ? Is there an oil ETF that accurately tracks crude oil prices ? I've noticed USO doesn't follow crude very closely.

[mdwllc]

Is there any downside on the Proshares ETFs such as low liquidity or high commissions ? Is there an oil ETF that accurately tracks crude oil prices ? I've noticed USO doesn't follow crude very closely.

The only one that has given me a little problem is ProShares DXD [ultra short Dow] because of its volume is less than QID,QLD etc. Yes I know, I just took another position at the close tonight...the reason is that I am trying to diversify as I'm already short the SPX and Naz...was wanting to diversify. As for straight commodity and currency ETFs, I have been very pleased with the DB Funds/PwerShares products..in full disclosure, I'm in currency [DBV] commodities [DBC] Agricultural [DBA] and will be taking a position in the US Rising $ [UUP] next week...Good trading MDW

[colours]

I'm going to make the shift from RYDEX to the ProShares Monday . I trade the NDX , DOW , Gold , and will trade oil when I find the right vehicle . Thanks for the heads up on DXD.

[Iblayz]

I have been trading in and out of the Proshares products for quite a while now. The big negative is the lack of efficiency in after hours pricing. It is not uncommon at all to see a wide bid/ask spread afterhours with neither price approaching fair value. So if you are in one of these and want to get out late day do yourself a favor and do it before the close.....even if you are on the road and have to call in an order. Other than that, be sure to visit the proshares website to see the closing net asset value of each vehicle. That will explain why sometimes the bid/ask the next morning looks unfair compared to the previous day's pricing.

[raleigh]

DCR = oil down UCR = oil up FXY yen FXE euro FXC canadian

[...]

Not quite sure why people actively trade in and out of low-volume ETFs with .5% or more annual expense charges when highly liquid, very tight-spread futures contracts, including mini versions are available. Not to mention that the tax treatment of FX, stock index, oil complex and all other regulated futures (as opposed to security futures, "security futures" having the legal and tax meaning of anything based on less than 10 stocks, such as SSFs or narrow-based indexes) contracts is 60% long-term capital gain even if you only held the position for 5 minutes. Perhaps they're trading ETFs in IRA or 401K or other tax-exempt accounts. If not, it doesn't make a whole lot of sense.

[kjt71]

Not quite sure why people actively trade in and out of low-volume ETFs with .5% or more annual expense charges when highly liquid, very tight-spread futures contracts, including mini versions are available.

Not to mention that the tax treatment of FX, stock index, oil complex and all other regulated futures (as opposed to security futures, "security futures" having the legal and tax meaning of anything based on less than 10 stocks, such as SSFs or narrow-based indexes) contracts is 60% long-term capital gain even if you only held the position for 5 minutes.

Perhaps they're trading ETFs in IRA or 401K or other tax-exempt accounts. If not, it doesn't make a whole lot of sense.

Just to make a comment about this:

Some people (or their spouses) could possibly work for a securities related firm that doesn't allow trading in and out of certain vehicles without a minimum hold time of 30 or 60 days....however mutual funds can usually be traded on a daily basis since they are managed by someone else.

Sometimes you have to pay a little extra to play.

[johngeorge]

Is there any downside on the Proshares ETFs such as low liquidity or high commissions ? Is there an oil ETF that accurately tracks crude oil prices ? I've noticed USO doesn't follow crude very closely.

Another ETF to play crude DBO although the pricing is NOT crude oil prices.