How do they add assets in the fund if people are shorting the shares? I guess the market makers that keep the price in line with the underlying by issuing/buying back shares just issue new shares to those shorts, take their own money, hand it over to the ETF, with the ETF then using those funds to by more VIX futures?
Often..... I traded VXX profitably on the original flash crash day years ago, bought TVIX 56 sold 940 etc, have mostly been losing money trying to bottomfish UVXY for months. I still think the best trading setup ever will be inverses when the market drops, though I tire of waiting for it. I'm looking for a 4x or better roi UVXY TZA SQQQ SDOW etc... UVXY great candidate for mother of all short squeezes, it'll skyrocket.... make GME look like kindergarten... I scale in and out of inverses vs buy and hold size due to contango/decay. in the meantime I'll mostly trade cannabis stocks on breakouts TLRY ACB SNDL CRON APHA HEXO etc