The new scam that will kill the market... ultrashort ETFs. They rebalance everyday, don't even think about getting involved in these double and triple short funds unless you are a day trader. If your broker is recommending something like Ultra Short Financials Proshares (SKF) then you should be very worried. Proshares just requested that 94 more ultra short ETFs are allowed to enter the market. There are a million problems with these products and I'll only name a couple.
Over the long term these are awful. All they help is bears that wreck the process of long term investing for investors. They are double and triple leveraged... remember how we got into this mess? Yes, leveraging way too much. Learn more about these before you take the plunge.
Read more here.
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