User 86999

Distressing Details of the UltraShorts

Thanks for addressing this issue. It is helpful to those who are new to leveraged ETFs, and are researching their options.

In the vein of 'distress', may I suggest doing an article that addresses the K-1 nightmares. That will also be a good topic for the people who may not know what to look for in a prospectus/SAI, such as the 'limited partnership', PTP and so forth. The real issue with K-1 producing ETFs is that even if you lose money in a transaction, you may still be slapped with a phantom income, for which you owe taxes. That does not make sense at all. So, I am taking the approach to avoid all funds that produce K-1 at the tax time. Any thoughts?