Sunday, April 28, 2013

Short Currencies Game

Sorry for the ugly post. Waiting on breakfast in Anaheim of all places.  iPod posts don't lend to clever tables or alluring graphics.

Anyway I was reviewing the state of Europe and wondered about ETF sector performance and more importantly relative performance.  Here's a table of currency ETFs:
http://etfdb.com/index/double-short-euro-index/

A couple things pop out when you pair them. 
YTD: double short Euro, Euro, double long Euro.
+1.63%,  -3.50%,  -3.00%

Currency exchange ETFs are obviously run by would be mortgage brokers who couldn't pass the ethics test.  

2 comments:

Eric said...

You don't really need to limit this to "currency" ETFs.

Any of the doubles and triples are zeros.

And they're not lacking in ethics. I'm sure the prospectus actually tells you they're zeros.

Rob Dawg said...

Okay, okay you win the cynics contest.

Yeah, lots of ETFs are fishy. It's like playing cards with the dealer while you are blindfolded. There are a few that are essentially indexes so it isn't all bad.

I just picked these beauties because of how out of whack they are with reality. Truth is EUD/USD trade is up 1% from January 1st and down 1% from January 4th. WTH are these guys doing?