PowerShares ETF Inverse QQQQ Tacking Failure?
Just a short note about PowerShares tracking today. The WSJ online reports the DOW closed down 362.14 at 13567.87, or a loss of -2.60% for the day. My DOG, the Short Dow30 ProShares closed up +2.65%, which I would call excellent tracking.
Unfortunately, while the NASDAQ closed down -64.29 at 2794.83 or -2.25% on the day, and the QQQQ NASDAQ 100 Powershares tracking shares closed down 1.87%, the PowerShares PSQ, which is supposed to invert the QQQQ only closed up 1.65% (.22% short of the goal) and the QID 2X inverse of the QQQQ only closed up 2.76%, or a full percentage point short of what I would have expected.
It may be that I misunderstood the product, or it could be that their tracking broke down under heavy volume as they couldn't find people to take the other side of the bet. Either way, I'm unhappy:-)
Unfortunately, while the NASDAQ closed down -64.29 at 2794.83 or -2.25% on the day, and the QQQQ NASDAQ 100 Powershares tracking shares closed down 1.87%, the PowerShares PSQ, which is supposed to invert the QQQQ only closed up 1.65% (.22% short of the goal) and the QID 2X inverse of the QQQQ only closed up 2.76%, or a full percentage point short of what I would have expected.
It may be that I misunderstood the product, or it could be that their tracking broke down under heavy volume as they couldn't find people to take the other side of the bet. Either way, I'm unhappy:-)
posted by Morris Rosenthal | 1:49 PM
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