Etfs

Only available on StudyMode
  • Download(s) : 27
  • Published : March 13, 2013
Open Document
Text Preview
UGA I would buy UGA ETF because it is one of the most important commodities in the world but I would take it for short investment. Despite of our high level of dependence and its usage in the transportation industry which are indicators of a safe choice the price of gasoline can be affected by a multitude of factors, including the health of the global economy, geopolitical tensions, and even tax policies changes across the world. My point of view for going short is because of the fact that UGA is a commodity which should not be used by long-term, buy-and-hold investors since positions in futures-based products, like UGA, can quickly turn against you. If you go for a UGA ETF you should be able to monitor your positions frequently and should also have a firm understanding on the energy market. So because gasoline is a very trend-dependent commodity, I would prefer short as the recent high prices of gasoline and its potentials and also of its continuous consumption, limited reserves, and gasoline cartel control is subject to rapid price increases in the event of perceived or actual shortages.

SPDR S&P 500 energy ETF, is listed to the top three ETFs with the best performance during January 2013, has a low risk something that we can observe it from the low standard deviation that the specific ETF has, approximately 15.21, but the low risk can mean that the return might not be as high as we would expect. Finally, the ETFs have the disadvantage that can be really affected from global economic situation. I choose this ETF because it suites my profile and in short term I believe that is going to give me the best return by minimize the risk of the global economic situation.

GOLD I would buy GLD ETF and pick it for long investment as it is not only the most liquid gold fund, but it is one of the largest funds in the world and a safe haven to invest your money. Going long for gold is a good idea because If you hold gold ETFs for more than a year, you pay a...
tracking img