ETF's are tail wagging the dog ?

Discussion in 'ETFs' started by Kicking, Jun 20, 2008.

  1. I am trying to understand how these ETF's and other long only funds work . If lots of new sheeps are buying these funds because they are going up, because of technical reasons (specific to ETF's) or because of Jim Rogers or because they are pushed by their advisor (one major non US bank I talked to now has commodities included in one of its "income" model portfolios! I was stunned, the advisor said returns are great, oil to go to $250 lol ) the fund managers have to constantly buy more future contracts thus driving prices ever higher,right ?