A.I.M. Users Bulletin Board

[ls7550]

Suppose for example someone had bought a 3X leveraged inverse etf for the S&P 500...SPXS...on January 2nd of this year for a cash substitute.

This etf had a 5:1 reverse stock split at the end of August. So, its adjusted close at the first of the year was $78.20. Yesterday it closed at $36.77. This is a decline of $41.43 per share, or -52.9%. However, it will need an increase of +112.67% just to get back to breakeven.

Hi Ray

SPXS 33.3% (3x S&P short), TIP 66.7% start date Jan 2nd 2013, compared to SH (1x S&P short) as of the end of November had the 33.3 SPXS/66.7 TIP combination at 0.781184842 compared to 0.783963691 for SH (total gains (losses)). Just a bit of noise in the difference.

i.e. on a level basis, the third in 3x short (two thirds in TIPS) compared to 100% 1x short.