$SOXSB DOES NOT MEAN “MINUS 3× FOR ANY PERIOD”
$SOXSB provides a bStock exposure to the SOXS fund. Its goal is approximately -300% of the semiconductor index’s daily movement. The key word here is daily.
Simplified example:
Index: 100 → 110 → 100
Result over two days: 0%
SOXS: 100 → 70 → 89.09
Result over two days: -10.91%
On the first day, the index rose by 10%, and the fund (hypothetically) lost 30%. The next day, the index fell by 9.09% and returned to 100, but the +27.27% for the fund was already calculated from 70.
The example does not account for expenses and tracking error. It shows the main point: SOXS rebalances its exposure every day, so the result over several days is not required to equal simply multiplying the index’s movement by -3.
Did you know about the daily update of the multiplier?
@BinanceCIS $SOXSB #bStocksCIS
$SOXSB provides a bStock exposure to the SOXS fund. Its goal is approximately -300% of the semiconductor index’s daily movement. The key word here is daily.
Simplified example:
Index: 100 → 110 → 100
Result over two days: 0%
SOXS: 100 → 70 → 89.09
Result over two days: -10.91%
On the first day, the index rose by 10%, and the fund (hypothetically) lost 30%. The next day, the index fell by 9.09% and returned to 100, but the +27.27% for the fund was already calculated from 70.
The example does not account for expenses and tracking error. It shows the main point: SOXS rebalances its exposure every day, so the result over several days is not required to equal simply multiplying the index’s movement by -3.
Did you know about the daily update of the multiplier?
@BinanceCIS $SOXSB #bStocksCIS
