what is going on with faz will it ever go up i bought it at 8 dollars....or should i sell it and take the los

alanj answered 9 months ago …

Sell it.

FAZ is a triple margined financial ETF. If the price of the underlying index remains the same it will lose value over time. This should only be used for short term trades (a couple of days to maybe a week, a swing trade strategy). Or if the underlying index is moving down fairly fast you can buy and hold until it stops moving or the trend reverses. Plus, this is a short fund. It will only increase in value if the underlying index goes down. And right now the financial markets are at a stand still. You should not be in any Ultra Financial ETF's right now.

FAZ is a short ETF and FAS is a long ETF. They are margined the same but they move in opposite directions to one another. But not necessarily at the same rate. Depends on their holdings and when the holdings where acquired. They should only be used when the underlying financial index is trending up or down. (FAZ for down trend, FAS for up trend)