User 161949

1 Comment

    • Preparing to Hedge with UltraShort ETFs [view article]
      OK, Paulo; I own the ProShares ultra-short real estate and Russell 2000 etf's, both double inverse, and I did have concerns about the solvency of ProShares. Answers were not readily forthcoming when I made inquiries, but I was told the company offers their funds and does not make its own bets. My thought is that this is not a ponzi scheme, but rather that the company buys the underlying investments that allow the funds to realize their double inverse relationship to the markets. The more shares are bought by the public, the more the company buys.
      I, who worry about such things, am not worried about this. Maybe I should be, but I'm not.
      Mar 08 10:39 PM
Contribute an Article Become a Seeking Alpha Contributor