Do L&I ETFs accurately reflect daily index returns?

Nearly a decade has passed since the global financial crisis, but some investors remain suspicious that they are being short-changed by derivatives-based products sold in Asia. In this first of a two-part series, we look at concerns about leveraged and inverse exchange-traded funds (L&I ETFs) – specifically, that traders can take advantage of hedging by managers of these funds. These products have an inherent inefficiency that creates a “field day” for market-makers (and hen…