Exchange Traded Funds and F-Squared Investments

F-Squared Investments: Investors are somewhere between those extremes, especially in the world of exchange traded funds where new issues based on emergent ideas pop up all the time, always purporting to be better than what already out there, according to Market Watch. Sometimes those new products really are superior, but in other instances they’re overblown — too good to be true — and in most cases they’re just not sufficiently proven. The former tends to apply to complete frauds, while the latter to investment processes that consumers shouldn’t trust yet. Nowhere for fund investors does that case play out more clearly than with F-Squared Investments, which last week filed for protection from creditors under Chapter 11 of the federal bankruptcy code. F-Squared was, at one point, the largest provider of ETF-managed portfolios, using quantitative, proprietary black-box strategies to make moves with exchange traded funds, promising to shield investors when the stock market nosedives without missing out on its leaps forward. While a deal was already announced that has Broadmeadow Capital buying the intellectual properties, investment strategies and management contracts of F-Squared, it is more F-Squared rapid rise and ultimate descent that investors should take notice of. (news.financializer.com). As reported in the news.