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Etf's / Commodities


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HOLA441

I've got about 5k to invest in the near future. Been a bit frightened of equities. Are there any commodities that look a good bet - with good returns so willing to take a bit of risk. Probably a straight commodity or index ETF, otherwise I'm looking at a fund manager.

I'm not particularly knowledgable, so hopefully this makes sense.

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HOLA442
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HOLA443

I've got about 5k to invest in the near future. Been a bit frightened of equities. Are there any commodities that look a good bet - with good returns so willing to take a bit of risk. Probably a straight commodity or index ETF, otherwise I'm looking at a fund manager.

I'm not particularly knowledgable, so hopefully this makes sense.

There's quite a gap between fund managers and etf/commodities. Relax and do some more home work before leaping in. Nothing wrong with staying liquid in cash for a bit longer while you evaluate options.

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HOLA444

I've got about 5k to invest in the near future. Been a bit frightened of equities. Are there any commodities that look a good bet - with good returns so willing to take a bit of risk. Probably a straight commodity or index ETF, otherwise I'm looking at a fund manager.

I'm not particularly knowledgable, so hopefully this makes sense.

Um ... commodities are higher risk than bigger-cap equities ...

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HOLA446

Good article in last weeks economist about ETFs and the risks particularly of synthetic ETFs and leveraged ETFs, contango and counterparty risk. Verdict "many ETFs probably unsuitable for the private investor"

For example, look at LNGA (leveraged natural gas). The price of natural gas has not changed by all that much, but each unit bought for 87 DOLLARS in 2008 would now be worth 34 CENTS. A potentially amazing tool of wealth transfer- from you, to someone else!

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HOLA448

Good article in last weeks economist about ETFs and the risks particularly of synthetic ETFs and leveraged ETFs, contango and counterparty risk. Verdict "many ETFs probably unsuitable for the private investor"

For example, look at LNGA (leveraged natural gas). The price of natural gas has not changed by all that much, but each unit bought for 87 DOLLARS in 2008 would now be worth 34 CENTS. A potentially amazing tool of wealth transfer- from you, to someone else!

Agreed, I used to regualary trade etfs about 3 years ago. The ones which are backed by physical metals are fine but the ones I bought which were backed by options seemed to have no relation to he price of the actual commodity whatsoever if held over anything other than a short period of time.

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