Wednesday, 4 Feb 2009 Hey Schapiro, Ban This ETF Posted By: Tom Brennan Topics:SEC | Stock Picks | Stock Market The Securities and Exchange Commission needs to protect investors from harmful financials instruments, Cramer said Wednesday, the same way the Food and Drug Administration protects patients from bad drugs. In fact, Mary Schapiroâs first action as SEC chair should be to ban ultra-short exchange-traded funds. Theyâre causing too much damage in the markets. Cramerâs talking specifically about the SKF, the UltraShort Financials ProShares ETF [SKF 132.49 --- UNCH (0) ], which takes a dollarâs worth of investment and doubles it in order to boost returns. The fund is supposed to be a play on the financialsâ decline. As the Dow Jones U.S. Financials index goes down, SKF shares go up. But that hasnât been the case. SKF investors have actually lost money despite huge declines in the banks. What this ultra-short fund really offers is the chance to sidestep the SECâs margin restrictions. Short sellers are now double the threat they once were, and their ETF-enabled positions are hammering down the financials, hurting common-stock shareholders and the markets as a result. In Cramerâs words, âit is a manipulatorâs dream come true.â This isnât the first time heâs railed against the SKF, and he said it wouldnât be the last. Cramer wonât quit âuntil the SEC does something.â In the meantime, watch this video for the full story on just how damaging these ultra-short funds really are.