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ETFs closing? UWT, DWT, OILU, OILD Anonymous Fri Mar 20 02:16:58 2020 No.17956004 [Reply] [Original]

Can someone with a little more experience explain the whys and the implications of these ETFs being closed?

How safe are the remaining alternatives, GUSH and DRIP? They're set to split in a few days, but no word of shutting down as of yet.

>>	Anonymous Fri Mar 20 02:17:42 2020 No.17956013 File: 25 KB, 707x494, ProShares ETFs.png [View same] [iqdb] [saucenao] [google] (the other press release)

>>	Anonymous Fri Mar 20 02:22:29 2020 No.17956070 >>17956004 We already warned in yesterdays oil thread. These are leveraged ETFs are not buy and hold funds.

>>	Anonymous Fri Mar 20 02:24:09 2020 No.17956086 Fuck. Guess I'm just buying something else.

Anonymous Fri Mar 20 02:24:32 2020 No.17956093

>>17956004
from what I can tell, they are closing up shop
Why? I couldn't tell you
but these are based off of the index.

https://finance.yahoo.com/quote/%5ESPGSCLP/
this one specifically but
https://finance.yahoo.com/chart/CL=F
crude oil in general.

It's not like people are going to effect the price by suddenly selling them or buying them.
They reflect shifts in the indexes.
So they are "tools" that are just going to not be made available to people in the market any longer. They'll still act like they normally would, up until april 2nd.

>>	Anonymous Fri Mar 20 02:24:32 2020 No.17956094 I dun get why would the inverse ETF would close too. Maybe because they are made in pairs.

>>	Anonymous Fri Mar 20 02:25:33 2020 No.17956108 >>17956093 Because if they are forced to delever at the bottom they are as good as dead i think.

>>	Anonymous Fri Mar 20 02:26:50 2020 No.17956128 File: 260 KB, 475x462, 1584659491132.jpg [View same] [iqdb] [saucenao] [google] This is how you know OIL is completely and utterly fucked.

>>	Anonymous Fri Mar 20 02:27:48 2020 No.17956143 >>17956013 UCO is not on the list ;)

>>	Anonymous Fri Mar 20 02:28:41 2020 No.17956160 These ETFs function by purchasing a basket of oil industry stock on margin, typically 3x. If the value of the stocks they buy drop by 1/3 they can literally get margin called and go to zero.

>>	Anonymous Fri Mar 20 02:30:01 2020 No.17956169 >>17956160 >by 1/3 I mean to 1/3. Oil is going to rebound because the big players can make the price skyrocket at will but who knows when that will be.

>>	Anonymous Fri Mar 20 02:31:04 2020 No.17956188 >almost bought in as babbies first investment phew, nearly BOGGED myself there

>>	Anonymous Fri Mar 20 02:33:02 2020 No.17956212 >>17956188 Lol

>>	Anonymous Fri Mar 20 02:34:55 2020 No.17956240 >>17956169 The obvious plan would be to trickle money into UWT and OILU and wait for the inevitable recovery. But apparently we cannot have nice things.

>>	Anonymous Fri Mar 20 02:37:47 2020 No.17956276 >>17956004 What does this mean? Someone doesn't want to lose? Someone needs cash? Something's fucked?

>>	Anonymous Fri Mar 20 03:24:13 2020 No.17956742 >>17956240 There are other oil etfs.

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