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western

Registered: Mar 2008
Posts: 157

12-11-08 03:14 AM

Can anybody explain the technical reason why the DUG etf, which is supposed to be twice the INVERSE of the oil and gas index as had such huge tracking error?

The etf is near the lows of the year. What exactly are the actual positions this thing holds?

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Free Thinker

Registered: Nov 1999
Posts: 14316

12-11-08 03:15 AM

Quote from western:

Can anybody explain the technical reason why the DUG etf, which is supposed to be twice the INVERSE of the oil and gas index as had such huge tracking error?

The etf is near the lows of the year. What exactly are the actual positions this thing holds?

http://www.ritholtz.com/blog/2008/1...ome-ultrabroke/

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stock_trad3r

Registered: Jun 2006
Posts: 9987

12-11-08 03:19 AM

ultra bull ultra bear ETF

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hedgeking

Registered: Jun 2006
Posts: 107

12-11-08 03:20 AM

lol you have a thing or 2 to learn about pro fund 2 X etf's. if you hold long term they're death. they have massive erosion as they use options options and futures to achieve the 2x leverage. do a little study. go look at fxp which is the chinnese bear 2x etf. it hit an all time high 3 -4 weeks ago at $180 and today it sits at a new all time low near $30 even though china is still 60% off all time highs. how could that be?REPEAT THESE ARE DAYTRADING OR NO MORE THAN A FEW DAYS TYPE VEHICLES

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