For those of you who use exchange traded products ..

[kiwing100]

 

Some of you may trade these exchange products to hedge or to make outright directional calls. 

 

Here's a lesson on how the performance of an exchange traded product varied significantly from the performance of the underlying index it was trying to replicate..  Caveat emptor ...

 

From my perspective - always look at the underlying assets owned by the exchange traded product and the nature of the security which you are buying would be the lesson to take away here.

 

http://www.bloomberg.com/news/2012-03-30/credit-suisse-opened-volatility-bets-to-small-investors.html