Wednesday, June 17, 2009

Divergence

Some graphs of ETFs and related indexes.

TBT is supposed to perform 2x inverse of TLT (for which I have inverted the data). However, it clearly doesn't. Neither track the rate indexes well. (NB: The rate indexes may be inappropriate, but I used them because I don't know of a price index to use.)

USO is supposed to follow WTI spot (after expenses and fees). Again, there's a big gap. But despite a lot of griping about USO across the tubes, it is performing better than the other ETFs I examined.

A follow-on question would be how are similar MUFs performing in comparison.

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