Replies to post #2726 on ProShares Trust Ultra VIX Short Term Futures ETF (UVXY)

[stingray113]

I encourage you to start by reading this article from the SEC:

http://www.sec.gov/investor/pubs/leveragedetfs-alert.htm

And here's a great chart illustrating this point again:



As you can see, VXX dropped 16% during this time period. You would assume that XIV would have gained 16%, but instead is essentially flat. The magic of decay!