Are you holding cash or making investment into progressing sector in 2016?

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#38
(17-05-2016, 02:49 PM)TTTI Wrote: Ok, but specifically how does the inverse ETF work?
Does it borrow shares and short them? utilise CFDs? or some form of futures?

I ask this because a few years back i shorted natural gas futures using an ETF.
Nat gas tanked, but the ETF was a losing proposition because of contango.
Gas prices dropped but the ETF bought futures and kept rolling over the futures every month, I assume aside from the contango, the transactional fees also killed the unit holders.

So it's not just enough to know so broadly how the ETF supposedly should react, but need to understand the specifics of how it's done.

https://thumbtackinvestor.wordpress.com/

I reckon, the answer has been provided by Behappyalways in his post

http://www.valuebuddies.com/thread-7509-...#pid129510
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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RE: Are you holding cash or making investment into progressing sector in 2016? - by CityFarmer - 17-05-2016, 03:24 PM

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