Have been leveraged ETFs that blew-up?

Discussion in 'ETFs' started by crgarcia, Nov 5, 2008.

  1. In a 2:1 theoretically a 50% adverse move would equal a blow-up.
    However many leveraged ETFs track twice the DAILY movement.

    Has any 2X ETF blown-up?
  2. A 50% adverse move in one day yes... over time no
  3. S2007S


    NO 2X ETF has blown up, I hear this time and time again, the only way it could happen is if a sector or index moves more than 50% in a day, and that really isnt quite possible, I dont think any sector in history has dropped or rallied 50% in a given 6.5 hour market day.
  4. It can theoretically go to zero but it cant blow up