Ultrashort ETFs Can Work if You Trade Them Correctly [View article]
"from the data presented above is that a bearish investor, betting against a major market average like the S&P 500 or the NASDAQ 100, could indeed have held the corresponding UltraShort ETF and realized a quite reasonable gain over the course of the last 12 months." This is absurd. His own stats disprove it. IYF was down 75.4%. By arbitraging with SKF, you would have needed + 150.8%; instead you got + 82.8%, i.e., SKF fell behind by 68 percentage points? Tracking error, anyone?
"short the SDS and long the IVV. While this is not a risk free arbitrage (unexpectedly low daily volatility could lead to the opposite effect), in the current market this doesn’t seem likely." This is not arbitrage but doubling up: short SDS is effectively double long + long IVV is another long.
Ultra Short ETFs Benefit From Volatile Market [View article]
Ultrashort ETFs Can Work if You Trade Them Correctly [View article]
This is absurd. His own stats disprove it. IYF was down 75.4%. By arbitraging with SKF, you would have needed + 150.8%; instead you got + 82.8%, i.e., SKF fell behind by 68 percentage points? Tracking error, anyone?
The Hidden Cost in Inverse ETFs [View article]
This is not arbitrage but doubling up: short SDS is effectively double long + long IVV is another long.