Quote:It is linked to the daily price variations.
Originally posted by Happy
Are the prices of HNU and HOU directly linked to double price variation of gas and oil prices, OR the prices of HNU and HOU depend of stock market (tsx) demand and supply?
It does not track the long-term directions of price.
That's true for any single or double or triple leveraged ETF.
The longer your holding term is, the more inaccurate the tracking becomes.
You should research into and fully understand leveraged ETFs before buying.
For example:
http://seekingalpha.com/article/104703-explaining-inverse-and-leveraged-etfs
Recently, a lot of investors have lost money with leveraged ETFs during the recent volatile markets because of lack of full understanding of how these ETFs work.
There was an article on Globe and Mail about this as well.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Location: INDIA (sometimes Canada)
Posted on: 10-09-10 16:25:55
Thanks "pratickm" for the link suggested as it clear all doubts about the working of these 2X ETFs.
Thanks "ashedfc" for explaining the difference of "erosion of value" during buying and shorting , hence avoiding the pitfall of just considering the lifetime low quotes.
Both of you are really knowledgable about these matters. Thanks again for your prompt reply.
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Enjoy Happiness -- Happy from India
Location: INDIA (sometimes Canada)
Posted on: 30-09-10 12:30:37
Can anyone clarify what is the essential differnce between BCE (Bell Canada Enterprice) and BA.UN (Bell Aliant Regional Communications).
I could make out that one is corporation other is unit trust.
1. I want to know are they sister companies (under the same management)?
2. Why they have created two corpoarte entities, when both of them are in the same kind of business?
3. Is it that BCE operates in Ontario and Bell Aliant operates in other provinces?
4. Which one is better to invest in at this point of time?
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Enjoy Happiness -- Happy from India
Location: INDIA (sometimes Canada)
Posted on: 30-09-10 15:05:04
but, if someone wants to have 20 percentage of portfolio in moderate risk and dividend paying stock - and for six month to two years period. then what r the other options?
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Enjoy Happiness -- Happy from India
Location: INDIA (sometimes Canada)
Posted on: 26-10-10 13:36:55
Now, I see some revival or holding on to current levels in the TSX stocks.
With the deadline coming nearer for several unit-trusts' convestion into corporations.
Is there any buy recomendation for any particular unit-trust??
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Enjoy Happiness -- Happy from India
