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BETAPRO SP500 VIX ST FTRS 2X DLY BULL T.HVU



TSX:HVU - Post by User

Post by MayorRobFordon Aug 19, 2016 9:03am
140 Views
Post# 25157784

How HVU is a legal scam

How HVU is a legal scamFirst off some basics. Market makers do not dictate the price action, those are with the Managed Money (true MM's) or asset managers. Market makers only provide liquidity in the market including etf's like this HVU scam. Fact is this etf only tracks the VIX futures price using undetailed financial instruments, it is disclosed in Horizon's prospectus. Market makers expecting the price to drop during course of day (which we know is usually the case) only need to short to some unlucky retail losers near beginning or during course of the day, and buy back before end of day, without ever trading actual VIX futures or holdings. This is why you may notice a drop most days and a small bump near the end of day. They want to liquidate their holdings usually before end of day, as this get rebalanced for next day, and usually they don't want to take a risk of the price going up in valuation overnight. Sorry, but this is the sad state of HVU. At least with VXX and UVXY, they trade actual futures and can impact the price. Market makers only make chump change each transaction in the spread between bids and asks, as they see the price deviating from the underlying securities.
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