by winston » Wed Sep 30, 2015 7:47 pm
AVOID THIS ETF
Our lead candidate for "world's worst ETF" recently hit another all-time low... and that shouldn't come to much surprise to regular readers.
Exchange-traded funds (or ETFs) track indexes, commodities, bonds, and other assets. There are many benefits to owning ETFs...
Since many aren't actively managed, they offer folks a portfolio of investments at a low fee. Plus, you can use them to quickly build a portfolio that's right for you. (You can read more about this idea here and here.)
But not all ETFs work as advertised. Longtime readers are familiar with our stance on the popular U.S. Natural Gas Fund (UNG). UNG is designed to track the price performance of natural gas, but its flawed structure makes it "bleed" value from shareholders.
UNG continues to do a terrible job of tracking natural gas. So far in 2015, the price of natural gas is down 8%... but UNG is down nearly 20% over the same period, recently striking another fresh all-time low. There are many solid ETFs out there, but UNG isn't one of them...
Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"