BetaPro Crude Oil Inverse Leveraged Daily Bear ETF T.HOD

Alternate Symbol(s): HBTPF

ng of shareholders on July 2, 2020 (see Recent Developments). HOD's investment objective, which became effective at the close of business on July 9, 2020, is to seek daily investment resHOD's investment objective was changed after gaining approval at a meetiults, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to up to two times (200%) the inverse (opposite) of the daily performance of the Horizons Crude Oil Rolling Futures Index (the Underlying Index, Bloomberg ticker: CMDYCLER). HOD is denominated in Canadian dollars. Any U.S. dollar gains or losses as a result of the ETFs investment are hedged back to the Canadian dollar to the best of its ability. In order to achieve this objective, the total underlying notional value of these instruments and/or securities will typically not exceed two times the total assets of the ETF. As such, HOD employs absolute leverage.

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BetaPro Crude Oil Inverse Leveraged Daily Bear ETF

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Post by 79AUon Jun 01, 2009 7:20am

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Post# 16032120

Flight from $USD

This could in part explain oil's rapid rise:

"Hedge funds and other speculators have more than quadrupled their futures-contract wagers on the euro’s advance against the dollar in the past four weeks to 15,584, the most since July 2008"

"The euro’s gains accelerated in the past month, rising 7 percent, the most since December, as investors sold U.S. Treasuries in favor of higher-yielding assets amid signs of economic recovery. Confidence among U.S. consumers jumped in May by the most in six years, while American service industries contracted less than forecast in April as home purchases rose. "

https://www.bloomberg.com/apps/news?pid=20601087&sid=akmEREZct9A8&refer=home

I'm a little sceptical about the confidence in a quick economic recovery. But, I can see hedge funds fleeing from the $USD and stampeding into oil, gold, and commodities.

The outlook is for the euro to continue to strengthen in the short term, but weaken by September.

So, oil could continue to command a premium until the $USD strengthens. It will be interesting to see the effect of the inventory overhang if the recession does not turn the corner as quickly as is hoped.