Would someone explain the FAZ ETF?? 5/21/10

Discussion in 'ETFs' started by FuturesNoob, May 21, 2010.

  1. Hi guys,

    I know ETF's have been mistaken by many investors, and apparently myself included.

    My questions is to why the SP is up 1 % but the FAZ ETF is down 9% today. Shouldn't it be 3-4%. Just a little curious to how this really works.

    Thank you.
  2. jd7419


    faz tracks three times the xlf bearish, fas is the bullish one
  3. Sorry I wasn't very clear. I have positions in Faz. I meant why is it down 9% when it should be down 3-4%
  4. FAZ is the 3x financial bear etf. It tracks the russell 1000 financial services index not the SP. If the russell 1000 financial index is up 1% the FAZ will be down 3% and the FAS will be up 3%.
  5. ahh I feel stupid. Should have known that!. Why was I thinking the S&P!
  6. You do understand the leveraged results they target are only for the day. If you hold these over a few days you will not achieve the 3x leveraged results.

  7. joe4422


    UPRO is the bull SandP 3X ETF, and SPXU is the 3X bear.

    Over time these ETFs do not track, they all head to zero.

    Don't let the charts deceive you, check the historical prices on yahoo.