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re: mutual funds that invest in mutual funds...

Posted on 1/7/13 at 3:37 pm to
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69933 posts
Posted on 1/7/13 at 3:37 pm to
quote:

Because you have a lot of decay in ETFs, especially depending on the strategy. Look at a chart of VXX versus the VIX and you will see the ultimate form of ETF decay due to option expiry. Also ETFs are much more complicated vehicles than most people really understand, the collateral posting backing ETFs can be made with securities that aren't even within the strategy. For example, there was a treasury ETF in Fall of 2011 that was collateralized with 30% Italian bonds.



^^^ This. He's looking at mutual funds because he's a passive investor, and passive investors are wise to stick with Index funds or Mutual funds.
Posted by Maniac979
The Great State of Texas
Member since Jan 2012
1904 posts
Posted on 1/7/13 at 4:30 pm to
(no message)
This post was edited on 1/12/13 at 8:31 pm
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