Illusional Delusion

ProShares Short ETF Short-Term Capital Gains Distributions

I'm not sure how this is going to matter much. I happen to have bought SRS in December (any time before that would have been much worse) so accounting for the wash sale rule, I will be taking the loss into 2009 either way unless I close my positions, which opens the gate for me to miss out on the upside of the position that I have taken. Given that most holders believe that there is still sizeable downside risk in the economy, the odds of losing out on the position's upside is a much bigger loss than the dividend's tax. Personally, I'm a small investor, so unless people are talking millions here, maybe I'm missing something...

Leveraged ETF Debate Hits the Mainstream

Like some mentioned, I don't see a point to this. The ETFs move in response to the movements of the stock or the index, not the other way round. I would agree if one says that some people wrongly used these ETFs as judges to how the index is doing but that is purely speculative. The value of the ETF is by its NAV which is based on the stocks, again, not the other way round.