As I understand it, leveraged ETFs have moderately large fees associated with them that are somehow worked into the pricing over time. Not quite sure how those fees are worked in over time, but I understand the fees to be around 0.9% per year. So holding a long position for a year in a leveraged ETF reduces one's return by 0.9% over the course of a year. Then, if I understand that properly, would shorting a leveraged ETF not reverse that 0.9% fee, such that shorting a leveraged ETF for a year would result in a 0.9% premium to the short position holder of the leveraged ETF? Follow up question, using this *hypothetical* example of these two mirror image leveraged ETFs: TNA- a Russell 2000 3x Bull ETF TZA- a Russell 2000 3x Bear ETF If one were bullish on the Russell 2000, would not it be better to short the TZA rather than invest long in TNA, since over the course of a year going long on the TNA would cost 0.9%, but shorting the TZA would actually increase return by 0.9%, a 1.8% differential between the two equivalent investments.