The Yen has been sinking like a stone against the dollar for the past 2 months, yet this triple short JGB ETF is down over that timeframe, while JGB 10-yr interest rates are relatively flat?
I thought this vehicle was supposed to capture the change in exchange rate of the yen vs. the dollar. So if the Yen is down 10%, shouldn't this ETF has risen 10% in the past 2 months, instead of sitting flat?
It looks like the Japanese are going to do a lot of printing to get out of this mess, and destroy the Yen. If this ETF can't capture that kind of action, but only captures actual interest rates and/or defaults, it isn't as robust as I imagined.
There have to be people to take the other side of the bet. Some etfs fail due to lack of interest in them. Hard to believe this is one of them. I'd love to be able to bet against Japan debt long term. I want to only make a small wager. You cant buy cds unless you have enough to bet larger sums.