5 January 2018: MiFID II, part 2

Yesterday, in the first part of our blog post, we wrote about MiFID II. As a result of this piece of European legislation, a large number of brokers across Europe have stopped offering American ETFs, because of the lack of information on these ETFs in other languages than English. Tim sent ProShares, a provider of ETFs (among which the UVXY ETF that is used by These Dutch Guys as part of their investment strategy), an e-mail. He asked the company, which is based in Bethesda, MD, about the future availability of information on UVXY ETFs in languages other than English. This is the answer he received:

From: International <International@proshares.com>
Date: 2018-01-04 18:41 GMT+01:00
Subject: RE: Key Investor Information Documents on ProShares ETFs in Dutch?
To: tim@thesedutchguys.com

Hello Tim,

Thank you for your interest in ProShares. We appreciate the opportunity to answer your questions.

ProShares does not currently market to retail investors in Europe. ProShares is currently reviewing the requirement for a KID document under the new European regulations beginning January 2018. Once ProShares makes a determination about producing KID documents, we will let you know via this email address.

If you would like to further discuss our products, please email us or call us at 1-240-497-6688 and will be happy to assist you.

Chris Bercaw | Client Service Consultant

As they say in the final part of an episode of a television series: To be continued.

white-chapel-logo-smallThe major US stock indices closed at all-time highs on Thursday, while the Dow topped the 25,000 milestone for the first time. The Dow added 0.61% to finish at 25,075.13. The S&P 500 rose 0.40% and the NASDAQ closed 0.18% higher. Volatility moved up and down yesterday, but basically went nowhere. The VIX closed slightly higher: +0.77%, mainly because of a final sprint during the final part of the trading session. UVXY ETFs recorded a small loss: -0.55%. XIV ETNs closed slightly higher: +0.1%. Danny Daredevil had to take a small step back. His RSS closed just below -10%. Adventurous Anny´s RSS remained at 23%, as she is still holding cash. Solid Suzy and Lazy Larry did hardly move. Their RSS rose from just below 113% to just above it.
None of our models gave a trading signal at the end of yesterday’s session.

Model Holds Start date





Danny Daredevil UVXY 1 January 2016





Adventurous Anny Cash 6 March 2017





Solid Suzy XIV 6 March 2017





Lazy Larry
XIV 6 March 2017





RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return


RS_v05-smallRené’s Reflections @ Friday: Two Laws of Chaos

Once, when I was much younger, I jokingly came up with my own ´two laws of chaos´. I can’t recall their exact wording, but it was along the lines of this:

The first law. Our world is moving slowly but steadily toward a state of disorder and discord and/or a state that is in misalignment with that which we would ideally like to see.
The second law. Any attempt to resist the first law will have no effect, other than to reinforce it.

Between now and last week, some things have changed. Not dramatically, but not for the better, and enough to be of some concern. First, MiFID II and PRIIP (see our blog post of yesterday) are putting a spanner in the works for those who live in Europe and like to trade ETFs that are not documented in their native language. Then, out of the blue, came the news about Meltdown and Spectre. A chip design vulnerability exposes sensitive data of almost all users in the world of computers, tablets and smartphones. A serious matter that will haunt the tech industry for years to come, and which most certainly will have deeper implications for our (cyber) security and (data) protection than we currently realize.
I had almost forgotten about my ´two laws of chaos´. But every now and then, things happen that make me think that maybe there’s more to them than I always thought. The more I think of it, the harder it gets to think of them as just a joke.