Know What’s in Your ETF and How the ETF is Calculated
One of the Fast Money guys mentioned the UltraShort Oil & Gas ProShares ETF (DUG) on yesterday’s show. He questioned how that ETF, which is the double inverse of oil & gas could be up for the day while oil was also up. A quick look at what DUG actually is gives the answer:
UltraShort Oil & Gas ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Oil & Gas IndexSM
That “daily” part adds one complication to the picture. From the article ‘Understanding ProShares’ Long-Term Performance’ on ProShares’ site:
ProShares are designed to provide either 200%, -200% or -100% of index …
tagged: ETFs, Oil, UltraShort Oil & Gas ProShares ETF (DUG) and United-States-Oil-Fund-LP-(ETF)-(USO)
