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  • More Uncertainty? Try Ultra ETFs [View article]
    sachin,

    The bottom line is "slippage". Both SPY and SDS have many "moving parts", and they're not the same "moving parts'. Same is true of other Ultra ETFs (DIG and DUG, for example). The inverse correlation is pretty close, but not perfect.The same holds true on just one side of the trade, over a span of time, because the Ultras basically start at "0" each day, so if you track the S&P, and it drops "x" over a 3 month span, SDS would NOT be up "2x" over the same period, but hey, they still make a decent hedge, or allow for some nice profits ;-)
    Nov 13 22:03 pm |Rating: 0 0
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