, we want to ensure that folks are using them appropriately and correctly. And they're really intended to be for traders or folks that have the ability and potential to pay keen attention to their portfolios," he said. "For investors who use them appropriately, many of them can find them to be helpful ... as some part of their overall strategy. But they're not intended to be long-term buy-and-hold investment vehicles.
"They are an integral part of the ETF ecosystem, and this recent campaign was not put out by the SEC. It's put out by other ETF issuers who don't have a dog in the hunt," Lydon said in the same "ETF Edge" interview. "I do think it makes sense for investors to be informed, and we want to continue to educate folks on that, but trying to bifurcate an already confused matter ... would almost confuse investors more if we end up with even more categories than there are," he said.
ETFEdgeCNBC Like Options traders you do need to know what you are doing if you use them. We use the long only versions for Trafalgar, our Family Office hedge fund to great advantage.
ETFEdgeCNBC Yes and no. If you study the futures charts of benchmark for each ETF (UGAZ/DGAZ = ‘NG’) then it can work out. Very risky though!!
FastMoney ETFEdgeCNBC Yes to Inverse. Absolutely not to leveraged, it is playing with fire and the compounding effect makes the final outcome unpredictable if you hold more than 1/few days. Read very well how these works unless you want to lose all your money.
ETFEdgeCNBC It works extremely well if there is an upward or downward trend like currently.