Quote:
Originally Posted by macker
That is why you have to get in and out quick though. Not a lot of better ways to play the changing sentiment in nat gas imo. As with every investment vehicle there are draw backs and the rebalancing is a draw back but how else would you play it? There is also the concern with some of these ETF's (gold in particular) about do they have enough gold to back the investments into the ETF's but that is an entirely different drawback/concern. I think the benefits outweigh the concerns but I agree ETF's are not for everyone....
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But you also pay a transaction fee everytime you move in and out...that just chews away your gains. The HBP ETF's are also more of a derivative in my opinion. The gold ETF doesn't actually hold any gold for example. Instead these are all holding a basket of stocks and National Bank writes a contract for those stocks to be exchanged for two times the movement of whatever that fund is following.
Personally I think that if you think that gas is set for a run then find an excellent gas company and buy the shares. I realise that the base commodity is less volatile and can be less risky than owning a company out right, but to consider leveraged ETF's you really aren't too concerned about volatility in any event.