A question often asked is if ETFs are any good? Do they do reflect the correct prices? There are enough haters of ETFs and ETNs. So I compared GLD and SLV with underlying futures to see the tracking error.
GLD has done a fairly good job of tracking Gold futures especially in the short time periods. Bear in mind that even using futures as instruments it's not possible to track gold prices exactly due to roll over of futures contracts.
https://www.grufity.com/grufity/GLD.GC
Found very similar results for SLV and Silver futures.
Bear in mind, ETFs and ETNs should never be used for long-term investing without considering the counterparty risks that all of them carry.
Submitted November 27, 2018 at 04:05PM by JohnInvest https://ift.tt/2TQ1j5J
No comments:
Post a Comment