The more I look at commodity ETFs, the less I understand their appeal. For investors with the risk tolerance and knowledge, futures often have better liquidity than ETFs.They also offer longer trading hours, and it’s as easy to short them as it is to go long.(I’m writing a piece on transitioning from stocks to futures, including a comparison of futures and ETFs.I’ll post when it’s finished.)
Natural Gas is one of the few markets higher today; the chart pattern jumped out at me this morning (breakout day rally).I was looking for info on it and came across this discussion of the problem with investing in the natural gas ETF, UNG.Wouldn’t it be a bummer to pick a winner and still not make money?
Read about it here.
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