While ETF’s have become one of the most popular investment vehicles for investors, their utility as a proxy for certain markets is limited by some structural flaws. One example is the natural gas market where it is not realistic to store natural gas in the same way that gold or silver can be stored. This creates a costly situation where you are obligated to pay the carry forward cost of buying futures contracts. The article goes into much more detail but the key point is that investors must understand exactly what is in the ETF that they are buying, as it just isn’t as simple as making a one way directional best.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.