Exchange-traded funds (ETFs) are all about relationships, so the marriage of ETFs and passive investing looks perfectly fine on the surface. But frighteningly, the basis of their relationship and the reason they look like they pair well will actually be their downfall.
There’s the one thing you need to know about ETFs that you probably have no idea about.
I’m going to use a scary word to describe ETFs, although you won’t hear the word used when it comes to ETFs anywhere else. That’s because not many people understand that the word absolutely applies.
The people who know it’s the truth – the sponsors of ETFs, brokers, and regulators – don’t want you to ever think of “that” word when you think about ETFs.
ETFs are derivatives.
There, I’ve said it. Now you know.
Here’s everything that’s been kept from you about ETFs, and how sticking hundreds of billions of dollars-worth of them into passive investing accounts could crash the market…
Exchange-traded funds (ETFs) are great. They’re packaged investment products that trade all day like stocks.
You can buy, sell and short ETFs that track:
- all the major stock market indexes
- any and every industry group
- different investing styles
- commodities like oil, gas, gold and silver
- entire countries
Just about any asset class or portfolio product Wall Street thinks you want to trade or leverage your bets with – even inverse ETFs that go up when their underlying market indexes go down – they are all here.
ETFs are hot right now. So is passive investing.
They’re so hot together that they’re going to ignite the next market crash.
It’s not a matter of if, it’s a matter of when. And it has ETF sponsors and regulators worried to death.
Here’s how bad it will get, what you need to know to protect yourself, and how to make a ton of money from the coming crash…