what happens to qid if qqqq goes high enough?

[n00b7r4d3r]

does it just go to 0 and stop trading?

Also doesent qid track profits that one would make shorting the qqqq? if this is true then what would be the advantage to creating a fund like this if the natural trend of the markets is to go up over the long, long term since you would eventually just loose money if you stayed short 100% of the time

if this is a stupid question bear in mind that the extent of my knowledge of etf's is that etf means exchange traded fund

 

[Norman_Shey]

I made the same mistake before also. It tracks on a percentage basis. So I guess they're good until they need to start subslitting a penny for the price.

ie for every time the qqqq would double the qid would half. if qqqq keeps doubling qid will keep halfing until it gets too small to deal with. I don't know what would happen then though.

 

[stevegee58]

Kinda like Zeno's Paradox

 

[fickletrader]

They'll just keep reverse-splitting QID. It is turtles all the way down.

 

[n00b7r4d3r]

maby i dont understand how etf's work but wouldent the fund itself be losing money as long as the general market goes higher?