QuantGuy emails:
Subject: Failure of the reverse leveraged ETFs
Today represented the anomaly that has been in the news lately about the inverse leveraged ETFs:
S&P down 0.06%
SDS down 0.05%
not only wasn't it doubled, it went in the same direction.
SDS is one such ETF ("UltraShort S&P500 ProShares") that is intended to protect against downside risk -- in this case against a daily drop in the S&P 500.
Looks like the fund designers need to go back to the drawing board.
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