Originally posted by pete11
Hi guys just wondered the day the sp500 was up 5% bbus should have gone up 12% the 2.5x leverage, yet it barely went up 1-2% why was that?
This opening on Monday the sp500 was up 3.4% so bbus should be down like 8% minimum, yet it probably won't be
Can someone tell me why that is?
Why doesn't bbus exactly match the 2.5x leverage it says it should, I understand about the 1.38% management fee, but some days bbus doesn't even come close to the 2.5x sp500 leverage it claims to have
I think the 5% up day you are referring too, you actually mean BBUS should have gone ‘down’ 12% not ‘up’ as you mention. I think from memory the day before the S&P fell like 2-3% but the ASX was closed on that day, so BBUS had a catch up day.
Also, BBUS is based on Futures that trade all day long. S&P may close up or down 2-3% but Futures then may move in opposite direction. BBUS trades on real time data, not close of S&P price.
accumulating around $6.00. Big day moves, next leg down coming soon...