Hi, I don't know whether anybody here will know the definitive answer to this. But the question is as follows: ETF's like SVXY have to keep changing the proportion of holdings in the M1 and M2 futures every day. So, they roll over a fixed percentage of their holdings in one future to the other future on a daily basis. But the futures change prices throughout the day. In addition to this fixed quota per day, do these ETF's also have hourly quotas or quotas down to the minute as to how much they have to roll over so that they meet their daily quota?
I actually found the answer to my own question in the wake of the carnage in these funds: https://realmoney.thestreet.com/articles/02/06/2018/how-xiv-and-svxy-went-rails-and-took-market-them . They trade only after hours in a process called TAS (trade at settlement). This process went very wrong for them on Monday and resulted in XIV getting wiped out and SVXY being down 85% at the open on Tuesday (it was delayed before finally opening) from close of regular trading on Monday.
Interesting balaji. its funny that it seems that because spxy was not doing its job as good tracking its index now it is better off haha.