"It’s nice to say that it’s 100% that we had a brilliant strategy to be able to say we did things why we did. In reality, there are some simpler factors involved," Hyland says. In other words, the fuels on which the world runs
seemed like a natural product around which to build an ETF.
"We did see there was an opportunity in these areas. There was an opportunity to be the first with these kinds of products."
Hyland stresses that he’s not telling anyone it’s a good or bad idea
to be investing in these commodities. "We think they deserve
representation in the investor’s menu of choices, but that doesn’t mean
investors should or should not be using them."
Look at your own outlook, the risk you’re willing to take and the returns you believe you’d make by owning such a product, and remember to read the prospectus.
Hyland is officially neutral on where he thinks oil will go. "Nobody really knows. It’s not our job to know."
In fact, not all investors in an ETF will be on the same page when
they hope something will go up or down. When it comes to ETFs, there
are two types: those who are long, and those who are short.
For that reason, says Hyland, "If I say oil’s going to go up, half
the users will be unhappy. If I say it’s going down, the other half
would be unhappy. You can’t win."