The volatility ETF's are currently the talk of the town (VXX, UVXY, TVIX, VIXY). Most investors I have spoken to have no idea how they work, the most frequently asked questions is; why is the VIX up 10% and the VXX is only up 2%?
Over time, this cost adds up, and is the primary reason VXX is down an eye-popping 99.6 percent since its launch, and down significantly in every year since inception. Fluctuations in the underlying VIX Index matter, too, but over longer-term horizons, contango are what's been killing returns for the ETN.--ETF.COM
Read the rest of the article here
Friday, September 11, 2015
Don't Overstay Your Welcome With These Vehicles
"Frank began his career on Wall Street nearly two decades ago. He worked alongside some of the most respected traders on the street. He quickly realized his true talents were in his ability to interpret market technicals as well as behavior. He was a full-service broker until 2011 when he decided that his no-nonsense approach and expertise was better suited as an independent rather than under the reins of the brokerage business. Since his transition, Frank founded Zor Capital LLC and had successfully managed the portfolios of high net worth individuals. Outside of the cliche cookie cutter approach. His achievements and advice have been featured by CNBC, FOX Business, Yahoo Finance, Benzinga, Wall Street Journal, and CNN Money. Frank is widely regarded as an influential trader in the industry."