Jason Kelly (of a website we wish not to promote) came out with a story last Friday that has sadly duped some in the investment community. Playing off of the deluge of creative ETF’s that have been introduced as of late, his article claimed a release of two new ETFs that would provide 100X leverage under the trading symbols (SOAR) and (SINK). His original post begins as follows:
“Kelly Capital is proud to announce on Friday the 13th the world’s first pair of 100x leveraged ETFs: Kelly Daily Nasdaq 100 Bull 100x Shares (SOAR) and Kelly Daily Nasdaq 100 Bear 100x Shares (SINK). The investments seek to replicate, net of expenses, 10,000% of the daily performance of the Nasdaq in the case of SOAR, and 10,000% of the inverse daily performance in the case of SINK. The funds will invest at least 80% of assets in securites that comprise the index. They will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The funds are nondiversified.”
Today Jason came out with a new post titled, “Investors Will Buy Anything” in which he confesses that it was, in fact, a satirical article. Most reading the story would immediately be able to dismiss it purely by context, however there are some who obviously were not quite so savvy. While we appreciate a good joke, in the interest of good taste it would have been a good idea for Jason to include a last paragraph explaining his humor. Instead he took the time to respond to those whom he duped by poking fun and relaying grade school statistics.
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