RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:This Widowmaker Connn Tango! Contango affects HVU price NOW, because HVU moves 4.16% of it's holdings into next month's futures every single trading day. So 4.16% of the fund, experiences a 7.47% loss every single trading day (net 0.31% of total HVU share price, contango constantly fluctuates).
The reason HVU is falling today is because VIX is down -4.23% (big divergence from S&P today). HVU should be down about -7.7% as it is supposed to track 2x the price movements of the VIX, so falling only -5.47% is a backhanded blessing.
However, I repeat: You should not trade something you do not understand. Learning the instrument should occur before buying, otherwise the lesson is much more expensive. I've studied HVU, VIX, and S&P for 4 years and this past move is still pounding me. If it was easy, everyone would be rich. Anywho, I can't tell anyone what to do. Can only relay my own mistakes so hopefully they don't repeat them.
PS if contango persists and VIX reverses, it will dampen the amount that HVU moves upward relative to VIX. Be advised. GLTA.