You are currently browsing the Capital Comments weblog archives for the day 25. August 2009.
25. August 2009 by Dan Walkow, CFA, CMT.
This is a buyer beware post on ETF’s. Recent capping of some Exchange-Trades Funds such as the United States Natural Gas Fund has led to these funds to trade at a premium much like a closed end mutual fund which trades at a premium or discount to Net Asset Value. Premiums or discounts can be as much as 20% or more and arise due to speculators bidding up or discounting a fund on speculation alone. This capping of ETFs is a recent phenomenon and bears watching. Buyers Beware. Full Story Here.
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