Discussion in 'Stocks' started by GHJK, Aug 18, 2011.
Can you not short canadian stocks? All my shorts have been rejected
Canada has a stock market?
Canada has stocks? Damn.
I love posts like the last 2. There's an old saying that says "Pride goeth before a fall".
I guess in this case it's the other way around.
Horizons BetaPro S&P/TSX 60 Bull Plus ETF - HXU
Horizons BetaPro S&P/TSX 60 Bear Plus ETF - HXD
Horizons BetaPro S&P/TSX Capped Financials Bull Plus ETF - HFU
Horizons BetaPro S&P/TSX Capped Financials Bear Plus ETF - HFD
Horizons BetaPro S&P/TSX Capped Energy Bull Plus ETF - HEU
Horizons BetaPro S&P/TSX Capped Energy Bear Plus ETF - HED
for all gurus i have another question about US traded ETF's:
if i short stock ETF, lets say BTF, i'm going to pay expenses fees? looks like if you long -it's 2.19%, but what if you short?
It's true, I've seen it with my own eyes. I even have a photo:
Try looking at TSX vs S&P 500 over the last 8 years. Anyone invested in the S&P 500 was in the wrong exchange. It would be interesting to see if you invested $1000 American 8 years ago in each what that money would be worth now. Huge difference in returns.
Canadians like watching American TV shows like Jersey Shore and Big Brother to get a glimpse into what Americans are like.
George W. Bush was always interesting, probably one of your brightest given he was your twice elected leader. I mean, he was no Ronnie Reagan, but definately top of his class in Texas.
Not going to state that I am a guru, but I will answer your question.
To simplify, let's contemplate an ETF that is comprised of a basket of dividend paying stocks, with monthly distributions. This would be similar to shorting an individual company that pays dividends - the short would be responsible for paying the dividend to the long.
The leveraged ETFs that you mentioned are a bit more complex, in that the ETF provider utilizes financial instruments, such as swaps, as well as potentially positions in the underlying, to accomplish a particular goal. Long holders of ETFs technically "pay" the expenses you are referring to, but do so from a NAV perspective (expenses reduce the net asset value of the ETF). A short position technically benefits from the expenses (again due to NAV), but the short would not receive any payment in relation to the expenses.
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