RE:RE:RE:RE:RE:RE:Pricing
It's not only possible that HVU goes to 0, it's CERTAIN.
That's what it's designed to do.
Very similar to a futures contract eroding in value over time, this ETF will continually erode to 0 (more specifically .000001) due to "contango" and "leverage decay". The only difference between the end game of HVU and a futures contract is that a futures contract actually has a definite expirey date, this does not. It all depends how fast the erosion occurs.
Because ETF's are relatively new I'm not sure how the ETF companies will handle this end result or if they've even thought about it. My guess would be that they could either top up the ETF by issuing new shares, or simply close and delist the fund. I'd assume they would issue new shares but this would still cause a dilution of a holder's shares. I'd be interested to know of anyone who know the procedure for this??
Long story short, do NOT hold this thing long term (1 week usually max). And be very careful.
I understand how this security works and what it tracks quite well, but I'm still hemorrhaging money in my trades with it so study, study, study. It's not easy by any stretch, and beginners luck isn't long term.
Best.