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BetaPro Crude Oil Leveraged Daily Bull ETF T.HOU

Alternate Symbol(s):  HZOZF | HROZF

HOU¿s investment objective is to seek daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to up to two times (200%) the daily performance of the Horizons Crude Oil Rolling Futures Index. HOU is denominated in Canadian dollars.


TSX:HOU - Post by User

Comment by PotVsKettleon Mar 24, 2020 11:01pm
88 Views
Post# 30844192

RE:RE:RE:RE:RE:RE:HOU Consolidation Question To Group

RE:RE:RE:RE:RE:RE:HOU Consolidation Question To GroupYes.  Consolidation does nothing to the value of a share.  It does impact the number of shares that a person may  be able to purchase but the value is the same.  $6x1000 = $0.6x10,000.

Your mistake is in how the ETF works from a gains point of view.  The Share value goes up  2x the PERCENTAGE gains on the underlying crude contract.

If WTI is $10 and it goes up by $1 or 10% then the ETF Shares go up by 20%
If WTI is $20 and it goes up by $1 or 5% then the ETF shares go up by 10%

WTI goes up $11 from $24 that is 45% then the ETF will go up 90% so the $6.76 will be $12.84 and your 1,000 shares would be worth $12,840

If there was no consolidation, then the share price would go from $0.676 to $1.28 and your 10,000 shares would be worth $12,840.

There is NO difference.  
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