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Technically, these people are hedging their portfolios. Just like insurance premiums don't create anything during periods of zero losses (they may actually seem
by erikig 9y ago
Technically, these people are hedging their portfolios. Just like insurance premiums don't create anything during periods of zero losses (they may actually seem like a loss themselves), holding these leveraged VIX ETFs can be used to protect one's portfolio.
- mrchicity 9y agoPlease read the prospectus for these products. Leveraged ETFs aren't appropriate for long term hedging.