ETFs Are Getting Risky


Bloomberg – There are now ETFs based on commodities and currencies.

Today, you can buy a leveraged ETF — riskier by design than the securities it bundles together.

Or an inverse ETF, which goes up when the relevant market bundle goes down.

Or a synthetic ETF, which tracks its benchmark with derivatives rather than by holding the underlying securities. Or you can trade options on any of the above.

Do complex ETFs pose a systemic financial risk? more> http://tinyurl.com/k34xjex

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