Lev ETF long term. NOT EVEN ONE???

Discussion in 'ETFs' started by asdfghj7, Dec 21, 2009.

  1. I understand that lev ETF's are for day trading/swing trade. Is there at least ONE lev ETF that follows it's underlying well. Is
    every single one a bad idea for 1-3 month hold time?
     
  2. yeah they are all not intended for long term holds - but Direxion did just launch monthly beta mutual funds that are leveraged and last I heard they were working on monthly ETFs.
     
  3. Most leveraged ETFs are designed to match the daily price change not the longer term.

    Just do a little calculation of daily returns to see that 1x compounded is not half of 2x compounded.