Look at Morningstar's list of the 20 best-performing ETFs year-to-date. These ETFs, which have shot up between 22% and 112% so far this year, could just as quickly lose that much and more. They may be liquid, but it is no place for the average investor to be. They are all ultra-high-risk speculative ETFs that are designed for day-trading and use leverage, short-selling and derivatives to try to achieve returns, or are niche-specialty exchange traded funds. To give you an idea of what they are talking about, the top five are:
ProShares UltraShort DJ-UBS Natural Gas
Direxion Daily Nat Gas Rltd Bear 3X Shares
Direxion Daily Retail Bull 3X Shares
ProShares UltraShort DJ-UBS Crude Oil
ProShares Ultra Nasdaq Biotechnology.
And it's ultra-high risk all the way down to number 20 and beyond.
Investors who cannot afford to lose (or are unwilling to lose) every penny of their "investment" have no business buying such ETFs, and financial advisers have a legal obligation not to recommend the purchase of these kinds of ETFs to most investors. According to Morningstar, investors should "beware" of specialty ETFs and use care (to say the least) in considering leveraged ETFs.
Investors and their advisers need to be wary and skeptical of ultra-high-risk securities and misleading sales pitches that seek to entice them to invest in them. These ETFs are about gambling, not investing.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
ProShares UltraShort DJ-UBS Natural Gas
Direxion Daily Nat Gas Rltd Bear 3X Shares
Direxion Daily Retail Bull 3X Shares
ProShares UltraShort DJ-UBS Crude Oil
ProShares Ultra Nasdaq Biotechnology.
And it's ultra-high risk all the way down to number 20 and beyond.
Investors who cannot afford to lose (or are unwilling to lose) every penny of their "investment" have no business buying such ETFs, and financial advisers have a legal obligation not to recommend the purchase of these kinds of ETFs to most investors. According to Morningstar, investors should "beware" of specialty ETFs and use care (to say the least) in considering leveraged ETFs.
Investors and their advisers need to be wary and skeptical of ultra-high-risk securities and misleading sales pitches that seek to entice them to invest in them. These ETFs are about gambling, not investing.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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