polishlogician

A Trend-Follower Positions for 2009

I was wondering if anyone could help me out today; namely, if you examine the ETF BGZ (3x bear large cap) it shows a meek gain, though the index it tracks was much lower. There are some BGZ holders pissed that this ETF did not leverage today's declines effectively, the Russell 1000, I believe. However, one commentator wrote that the spread between NAV and pps today were so wide that this created the problem. Can anyone explain or point to where I could study how the effects of the NAV spread (premium/discount) make an ETF (3x) move relative to its index? Thanks.