Comments on: Betting on Natural Gas – Part II http://youngandinvested.com/stocks-and-companies/betting-on-natural-gas-part-ii/ THE hub for finance and investing insights from the new generation. Sun, 13 Jun 2010 22:30:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Shishir Nigam http://youngandinvested.com/stocks-and-companies/betting-on-natural-gas-part-ii/comment-page-1/#comment-556 Shishir Nigam Thu, 26 Nov 2009 01:43:33 +0000 http://youngandinvested.com/?p=483#comment-556 Hi Mel, Thanks for your comment. Yes, indeed there has been quite a lot of speculation about the effectiveness about leveraged ETFs. The general consensus is that leveraged ETFs should only be used if you're day trading or holding them for a short time horizon. This is because these ETFs are said to under-perform the index that they track (in leveraged terms), because their method of leveraging. This means that a 2x ETF's return over a long period is likely to be less than 2x the index return. Hi Mel,

Thanks for your comment. Yes, indeed there has been quite a lot of speculation about the effectiveness about leveraged ETFs. The general consensus is that leveraged ETFs should only be used if you’re day trading or holding them for a short time horizon. This is because these ETFs are said to under-perform the index that they track (in leveraged terms), because their method of leveraging. This means that a 2x ETF’s return over a long period is likely to be less than 2x the index return.

]]> By: Mel http://youngandinvested.com/stocks-and-companies/betting-on-natural-gas-part-ii/comment-page-1/#comment-547 Mel Tue, 24 Nov 2009 15:30:00 +0000 http://youngandinvested.com/?p=483#comment-547 Hi, great article. I've recently taken up investing esp on ETFs. I have bought ETF's including HNU and other horizon X2 etfs. I've been hearing a lot about the leveraged ETFs like Horizon's being scams from co workers whom are in the finance industry. What is your take on this? Hi, great article. I’ve recently taken up investing esp on ETFs. I have bought ETF’s including HNU and other horizon X2 etfs. I’ve been hearing a lot about the leveraged ETFs like Horizon’s being scams from co workers whom are in the finance industry.

What is your take on this?

]]>