Various comments from yesterday display a continuing misundertanding of this instrument:
Where is the SEC?
The VIX is up 81 cents and this is a 2X fund. It should be way up??? This is insane.
I thought this reverse follows S&P 500, I read that in prospectus.
Just curious if anyone knows why TVIX is not keeping up with TZA as the market drops today?
With S&P down 9.5 TVIX should be up .18
This is not trading per its formula ???
If this is the case the fund manager should be terminated for rolling over to a contact that is almost impossible to catch up without a counter leverage.
Where are these prices coming from 12.70 to 14.19??? Is it like a Car's retail sticker price. Who would buy that fantasy number. No one pays that price, so bet against it and the fund manager takes all his customers to zero...right?
TVIX does NOT follow the VIX nor the SPY nor the Treasuries. It is a note whose value is based upon a complex mathematical algorithm that simulates a basket of front two months VIX futures that roll on a daily basis during each futures cycles.
It's good that you care enough to warn others. SEC? Forget it. Direxion, Proshares, Velocity, others..too big to pick on; they have carte blanche on your money. This can, and has dropped 40% on market moves down, I've learned and moved on.