A pair of new exchange-traded funds just hit the market that will allow investors to make money faster than ever before. But they can lose it just as quickly too.
ADVERTISEMENT
There's an incredibly risky new way to bet on stocks (UP, DOWN)
A pair of new, quadruple-levered ETFs just hit the market that will allow investors to make money faster than ever before. But they can lose it just as quickly.
ADVERTISEMENT
The possible downside isn't lost on the investment public. In a January blog post, Themis Trading principals Sal Arnuk and Joe Saluzzi highlighted some of the biggest risks facing the funds — ones laid out by the fund provider itself in an SEC filing.
Here are the risk factors disclosed by ForceShares that Arnuk and Saluzzi found most troublesome (emphasis theirs):
- The Sponsor has
- leanly staffed
- The success of a Fund depends on the ability of the Sponsor to accurately implement its trading strategies, and any failure to do so could subject the Fund to losses
- The Sponsor
- The Sponsor has
- The failure or insolvency of the Custodian for a Fund could result in a substantial loss of the Fund’s assets
- The Funds are not registered investment companies, so you do not have the protections of the 1940 Act
FOLLOW BUSINESS INSIDER AFRICA
ADVERTISEMENT