TTurk

ProShares Ultra and UltraShort Sector ETFs: Does 2 = 2?

I have traded the +/-2 beta funds at Profunds and Rydex since 1998. Yes, there is tracking error. It is difficult to do what these companies are trying to do and they do a very good job. You are still better off using these products than using +1/-1 beta products on 50% margin. Also if you trade for very short periods 1-10 days, the cumulative tracking error for your long and short moves is a fraction of staying on one side for several months at a time.