5 ETFs With Nasty Surprises (AMLP, TVIX, USO)

April 13, 2012


With the amount of exchange-traded products on the market increasing just about every week, investors need to remain aware of the unexpected surprises that some ETFs and ETNs may carry, according to an article on Benzinga.com.

These ETPs are mentioned in the Benzinga article:

  • ALPS Alerian MLP ETF (NYSEArca: AMLP): Not structured as a C-Corp, which may add high cost to an already-high expense ratio.
  • United States Oil Fund (NYSEArca: USO): Fund expenses tend to affect USO’s long-term performance.
  • First Trust Nasdaq CEA Smartphone Index Fund (NasdaqGM: FONE): Apple and Samsung are FONE’s largest holdings—but together they account for less than 8.0 percent.
  • UBS E-TRACS 1 Month S&P 500 VIX Futures ETN (NYSEArca: VXAA): Features a 1.35 percent “tracking fee,” also with 4 percent in annual expenses.
  • VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca: TVIX): Possibility of its creation/redemption process breaking.


Go to Benzinga.com for further details on the funds mentioned above.

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