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Looking for Derivative ETFs? Consider These 5 Funds


Looking for Derivative ETFs? Consider These 5 Funds

Many investors see derivatives as inherently dangerous, pointing to the role that derivatives have played in events like the 2008 financial crisis and several other stock market downturns. Even Warren Buffett has pointed out the dangers of derivatives. Yet by themselves, derivatives are just tools, and the risk comes from how any particular investor uses them. Different investors mean different things by the idea of a derivative ETF, but dozens of funds use derivatives prudently to get exposure to certain parts of the market. The following five ETFs make use of derivatives in very different ways, but they each appeal to a certain cross-section of the market.

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Source: Fool.com

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