kotika98

More ProShares Ultrashorts Tomfoolery

You should have read their prospectuses! They have a chart somewhere showing exactly how much the fund is expected to lag its -2x objective given a level of volatility. Another thing concerns the observation that it has optionality/time-decay properties. Indeed, the prospectus is clear that in order to set up the fund they are buying a daily resetting swap from an investment bank. That means they are buying a dynamical hedge for an option of strike at zero daily. IT IS AN EXPENSIVE PROPOSITION!