Small ETF Investors Squeezed Out by Regulators

US regulators’ war on speculation is resulting in collateral damage – the small investor.

According to the WSJ’s Brian Baskin‘s article Small Investors Face Big Hit in ETF Push, exchange-traded fund investors are victims of the CFTC’s crack down on commodity markets. Commodity ETFs have ballooned to $59.3 billion by providing small investors an avenue for gaining exposure to commodity futures.

Baskin points out that several ETFs and ETNs have been affected by recent regulatory actions including the United States Natural Gas Fund (UNG), PowerShares DB Oil Fund (DBO), PowerShares DB Crude Oil Double Long ETN (DXO) and iPath Dow Jones-UBS Natural Gas Subindex Total Return ETN (GAZ).

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