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It depends on your ETF. Some have synthetic exposure to the index sold by a sponsor (ie someone give them exactly the performance of the index) but this has a cost (a constant / deterministic drag on the NAV of your ETF which doesn't appear in your tracking error). Futures on the other hand have basis, are sensitive to changes in implied dividends and ...


Briefing.com has an api and ravenpack has data as well to find news for stocks that are members of indices.


Yes. First, XLF and FAZ do not track the same underlying benchmark. -> XLF tracks the S&P Financials Select Sector Index -> FAZ tracks the Russell 1000 Financial Services Index I'll ignore that for this sake, because their baskets are likely still very similar. Pretending their benchmarks were the same, you would theoretically have a dead on (3x) ...


Hedginge/Adjusting would be with the Beta of the inverse ETF. Usually, Long/Short strategy would involve an ETF and a stock in which you would Beta adjust the ETF position. You can use an ETF, I don't see anything wrong with this as long as their is some level of correlation between the Short and the Long. You want them to mean revert in a determined time ...

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