Morningstar: Steer Clear of Leveraged Oil ETFs -- Market Talk
Today 1:28 PM ET (Dow Jones)
13:28 ET - Morningstar has a message for investors considering the two leveraged crude oil ETFs ProShares debuting Monday: "stay far, far away." ProShares UltraPro 3X Crude Oil ETF (OILU) and ProShares UltraPro 3X Short Crude OIl ETF (OILD) each use borrowed money to magnify their very volatile underlying holdings by a multiple of three daily, says Ben Johnson, director of ETF research at Morningstar. "If you're an investor looking at these, you're playing with fire," he says. "Longer term, they're a surefire way to set your money ablaze." (Daisy.Maxey@wsj.com; @DaisyMaxey)
(END) Dow Jones Newswires
March 27, 2017 13:28 ET (17:28 GMT)
Today 1:28 PM ET (Dow Jones)
13:28 ET - Morningstar has a message for investors considering the two leveraged crude oil ETFs ProShares debuting Monday: "stay far, far away." ProShares UltraPro 3X Crude Oil ETF (OILU) and ProShares UltraPro 3X Short Crude OIl ETF (OILD) each use borrowed money to magnify their very volatile underlying holdings by a multiple of three daily, says Ben Johnson, director of ETF research at Morningstar. "If you're an investor looking at these, you're playing with fire," he says. "Longer term, they're a surefire way to set your money ablaze." (Daisy.Maxey@wsj.com; @DaisyMaxey)
(END) Dow Jones Newswires
March 27, 2017 13:28 ET (17:28 GMT)