NEW: Double weight spiders & Q's

[ImamicPH]

Double weight???


I don't get it.

 

[Rearden Metal]

Quote from ImamicPH:

Double weight???


I don't get it.

SPY moves 1% ---> SSO moves 2%
QQQQ moves 8%---> QLD moves 16%...

 

[rws3z]

Will the SSO and QLD pay a double dividend? Are they trying to peg the ratio of the SPY to the SSO to start at 1.75? Will the inverse products owe a dividend? I am also curious if the inverse products will pay interest for being long.

There had been some mutal funds that do this(profunds or something like that), and if I recall they did not do a good job of keeping in line with the underlying product they were trying double.

 

[IronFist]

Quote from rws3z:

Will the SSO and QLD pay a double dividend? Are they trying to peg the ratio of the SPY to the SSO to start at 1.75? Will the inverse products owe a dividend? I am also curious if the inverse products will pay interest for being long.

There had been some mutal funds that do this(profunds or something like that), and if I recall they did not do a good job of keeping in line with the underlying product they were trying double.

Bump (unless I missed it in one of the other double weight ETF threads).