Discussion in 'ETFs' started by callan300, Jun 5, 2020.
Currently around $7
Can it go to zero ?
Only if SPX/SPY goes up by 33% in a day, but that should be prevented by circuit breakers and the laws of nature, so rather won’t happen.
However, it can go to $0.01 and even lower over the years, though before then it would either be liquidated or reverse split. And that’s actually what happened in the past, if you look at its chart since 2009 - the only reason it’s still above $0.01 is because it’s been reverse split a few times.
Its actually designed to continually go lower, as every spike in SPY/SPX makes SPXS go down by a higher percentage that is hard for it to recover from.
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