Understanding commodity ETF decay

Pavel Hála | Quantitative trading | 1. 3. 2017

In the previous article, I explained the compounding effect and the reason why leveraged ETFs lose value over time. Today, we’ll take a look at commodity ETFs. These funds can decay very fast, even if they are non-leveraged. That’s because the mechanism of decay is of a different nature than that of leveraged ETFs holding…


Not all ETFs are created equal

Pavel Hála | Quantitative trading | 20. 2. 2017

ETFs or Exchange Traded Funds are an investing hit of recent years. Even small investors can seamlessly open a position in a stock index or various commodities using an ETF. Previously, this was only possible by using big futures contracts that require a huge account. However, the human invention has no boundaries. More exotic ETFs,…