I was disenchanted with ETFs when I realized sometime ago that ETFs were being "misused" or "manipulated". I lost on UNG, DBC, and a host of others. I tried to look for answers and found to my satisfaction that ETFs are not for retail investors. My analysis and research has convinced me to stay away and warn others.
ETF securities can be created by "authorized" brokers/partners out of thin air. Surely there are rules, but that never stopped W/S crooks to do what they did for last 10 years or more. Just think why Fidelity will trade 25 ETFs for free?
There is no point in thinking that "your etf" is safer than others. I thought my "Senator/Congressman" was above petty politics and cared only for the country! How wrong was I?
I know there is always arguments on both sides. But a retail investor is always on the wrong side of the argument.
you have summed up what i've been kind of feeling in my gut for a few years.
i stepped in to a couple of etf's quite a while back, with mixed results, mostly unsatisfactory. still in a latin-am etf, and would like to exit some day.
what has always perplexed me is the heavy marketing and seeming advisor and retail adoption of etf's as a longer-term investment vehicle with better liquidity than mutual funds. there are just so many of them that i just don't understand how all could be beneficial above an average index norm, and most probably, like the vast percentage of mutuals - less than benign index returns.
it would be far safer with higher yields to simply buy baskets of fixed-income securities at > 10% payouts and why worry so much about the ups/downs.
Thanks for your post. I am glad you have confirmed what I have said and needs to be said for the sake of retail investors. Just because something sounds great on paper, it does not translate as a good thing in reality.
Here is an article By Chuck Jaffe of MarketWatch: "Why investors don’t need ETFs"
priviet you said, "it would be far safer with higher yields to simply buy baskets of fixed-income securities at > 10% payouts and why worry so much about the ups/downs. "
I agree with you. I am in the process of building a basket of stocks that provide income and or capital gains. Not only did we lose the first decade of 21st century, we are getting ready to lose another one. Only the securities that provide income and or growth will survive. Others will become "dogs of downstreet".