FreeMktAdvocate

Double Short ProShares ETFs

The double inverse track the double inverse of the DAILY price movements of the inverse. In the case of SRS it tracks the double inverse movement of IYR (The Dow Jones US Real Estate Index). The important thing to remember is that the fund is born and dies every day and does not correspond to price points with IYR. I.e. if one day IYR was at 100 and SRS at 200 then another day when IYR approaches 100 SRS could be at $150. The fact that a % down has more of a negative effect than a % up, SRS will tend to trade downward over time. Accepting this fact then you find that the leverage on this ETF actually works AGAINST you over time and should therefore be avoided unless you think there will be a sustained downward trend in IYR.


On Sep 19 02:38 PM mamie wrote:

> if you find out anything please let mo no
>
>
> On Aug 24 10:14 PM johnthebear wrote:
>
> > CAN ANYONE EXPLAIN HOW THE DOUBLE SHORT ETF BY PROSHARES WORKS?
> IS
> > IT SAFE? I OWN FXP AND SRS, BUT IT KIND OF SCARES ME.
> >