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Exchange-Traded Funds - Not what you think

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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