Wednesday, September 24, 2008

ETFs still afloat

Several of Proshares' ETFs like SDS paid dividends today, which makes it appear in the charts as though investors lost several percentage points this morning. For a couple of minutes there I thought the major meltdown of derivatives had arrived, but all is well for now.


Jim Driscoll said...

Thanks! Shoulda thought of that.

Anyhow, it prodded me into just selling all of it - after SRS diverged > 5% interday three days ago, this was just one more reason to be wary of this stuff in a hairy credit environment.
(And yes, the SRS divergence from DJUSRE isn't explained by dividends.)

I'm going all in to GRZZX after the bounce from the latest "rescue" bill. Hold until S&P 950, then reevaluate. If there's no bounce, then Oh well, missed opportunity. 100% cash meantime.

I wish there were more choices, but BEARX has been seriously underperforming in a down market - they're going up, but not as fast as I'd like, and they go down pretty fast on the rallys.

Jody said...

Sounds like we're on the same page. I only like BEARX as a pre-correction defensive fund in a bull market. With derivative-using ETFs under threat, GRZZX is our last best bet for this bear market.