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This is Part 2 of my first set of articles on Seeking Alpha. The topic is the well-covered idea that the widely popular class of instruments known as daily leveraged ETFs will tend to perform poorly over longer holding periods. Part 1 dealt with the some of the main mechanisms working against a longer-term investor in daily leveraged ETFs, and reached the conclusion that uninformed investors should stay away from longer-term positions in these instruments.

This second part explores how daily leveraged ETFs can provide attractive medium- to longer-term short-selling opportunities. It covers some of the main factors increasing the return potential for the short-seller, a few variations of how to execute such strategies and lastly, but for sure most important, some words on the associated risks and suitability of initiating these type of strategies.

I want to make it clear that these are speculative trading strategies with a very high level of risk. I do not advise any uninformed investor to enter short-selling positions against these ETFs. Doing so can be extremely risky for several reasons, some of which are emphasized in this article. My general advice in Part 1 about just staying away from passive buy-and-hold positions in these ETFs is a more prudent and less risky idea, suitable for most long-term investors.

In addition, my articles on the topic will not focus on the intended use of these instruments as short-term trading vehicles or hedges. Any insights from short-term and/or quantitative traders are very much appreciated in the ensuing article discussion, though, especially concerning trade execution and the hedging of tail risks.

Background on short-selling daily leveraged ETFs

Due to dynamics mentioned in Part 1 of this article, daily leveraged ETFs will, in general, provide disappointing results if passively held as long-term investment positions and, for most underlying asset classes, this is particularly true for the inverse leveraged ETFs. Given that one buys these propositions about daily leveraged ETFs and their longer-term risk-reward profile, one implication is that there could exist attractive short-selling opportunities among these instruments. What this part of the article will emphasize, though, is that however attractive at first sight, such opportunities come with their own set of risks and practicalities to consider carefully before putting on any trades.

There are several existing brief articles here on Seeking Alpha on the short-selling of daily leveraged ETFs. One recent example would be this piece by Macro Investor. My intention with this article is to initiate discussion on a more general level, while bringing additional clarity on some key practical issues that could very well decide whether to enter a short against this type of instrument or whether to take a pass.

Risk implications for the short-seller of daily leveraged ETFs

Being short a daily leveraged Bull or Bear ETF overnight has quite a few important implications concerning risks and opportunities, due to the complexity of these instruments' path-dependent medium- to longer-term risk-return. Starting out with the downside, the following are some of the main adverse risks facing the short-seller of daily leveraged ETFs:

1) Short-term price action risk

As you go short a daily leveraged ETF, you are now short gamma on a daily basis, like the seller of an option. Any strong one-directional move with little or no pullback will have a rather powerful short-term effect on these trades that you, as a short-seller, must be prepared for with a plan of action if you are to be able to exploit the longer-term dynamics working against these instruments. A simplified example would be being short a 3x daily leveraged Bull/Long ETF when the underlying would suddenly experience, let's say, 10 straight trading days of consecutive +3% daily returns. Theoretically, that could add up to you being down approximately 137% ([1 + 0.03*3]^3 - 1); i.e., if unhedged you will need to have substantial room left in your margin to avoid a margin call if such an event, however unlikely, would occur. A repeat of the 1987 Black Monday -22.61% one-day crash would put the short-seller of a hypothetical 3x daily leveraged Bear ETF on the Dow Jones Industrial Average index down 67,83% ([1 + 0.2261*3] -1), in a single day. Note that the above example effects are on the Net Asset Value-level ("NAV"), not to confuse with the ETF's market prices.

2) Short-term price/NAV premium risk

Adding to this, the ETF can simultaneously experience a short-term pricing effect where the price/NAV discount decreases (premium increases) as momentum traders become more willing to pay up for short-term leverage during a sharp price move, adding additional pain to you as a short-seller of this instrument. While perfect symmetry in the price/NAV effect is unlikely, a similar effect in reverse could simultaneously occur in the daily leveraged ETF on the opposite "wrong" side of the sharp price move. Here, there could be liquidation of long positions taking place at temporarily widened price/NAV discounts (lowered premiums) -- benefiting the short-sellers of the opposite direction daily leveraged ETF.

3) Borrowing conditions risks

Given that the opportunity to exploit these funds' longer-term dynamics is clearly observable for market participants, the borrowing rates for units of these ETFs would, in an efficient market, be prohibitively steep. In a simplified sense, if the market for lending ETF units would be efficient, it would, by arbitrage, price the costs of borrowing daily leveraged ETFs to be approximately equal to the expected risk-adjusted returns of shorting these ETFs. This means that if the profitability of short-selling strategies goes up or associated risks come down the brokers will, ceteris paribus, be able to increase the costs for borrowing the units to short because they will be in higher demand.

If the speculator is fortunate, his/her broker will offer rates low enough and availability good enough for some of these instruments that the speculator will be able to consider these strategies. As practical advice, the feasibility of an outright short strategy with an attractive risk-reward is questionable if the speculator's broker is known to actively limit the supply of ETF units to borrow and/or raise borrowing rates on these to double-digit percentage points as a recurring response to market volatility or price swings in the prospective short target ETF. This is unfortunate, but without changing brokers, there could still be opportunities to put on a short position through options or CFDs (despite the CFD instruments' counterparty and execution risks).

For some academic insights on the aspect of borrowing costs, you can review this recent empirical paper by Doris Dobi and Marco Avellaneda. (Note that these authors use a theoretical model for slippage, based on ex post data. I would put more emphasis on your own ex ante view of the shorted instrument's expected return going forward, basing your view on the fundamentals of the underlying and on potential weaknesses in the ETF structure. I found Dobi and Avellaneda's discussion on front-running very interesting, though.)

Risk aspects working to the short-seller's advantage

Fortunately for the potential short-seller, there are as well a number of significant risk aspects with these ETFs' longer-term dynamics, as covered in Part 1, which the short-seller could exploit in the choices of what underlying and what instruments to short, and in strategy execution:

1) Focus on underlying instruments with high expected volatility

It is in general preferable if the underlying asset's future price path is expected to be highly volatile. Ceteris paribus, this means that a broadly diversified and highly liquid equity index such as the S&P 500 could be a less attractive underlying for this trade than e.g., a sector index or an emerging market index or a specific commodity such as crude oil. You also want to be able to expect recurring price swing action on as many types of exogenous shocks as possible; optimally, the underlying should be expected to experience wide daily see-saw swings from time to time.

The individual speculator's expectations of price path and return volatility will, of course, vary with his/her market view and view of the underlying's fundamentals. With hedging and/or rebalancing, the speculator can, to some extent, handle adverse price path developments. More on this in the next section.

2) Focus on structures with as punitive execution as possible

All things being equal, ETFs with higher total expense ratios would be preferable shorts of those with lower ratios. Also, ETFs of highly specialized and aggressive ETF operators could, in my view, be most interesting to research for shorting, but do not take first impressions too seriously and do your own basic research.

Would an operator choose to cease operating a shorted ETF, for e.g., commercial or regulatory reasons, or be forced to do so temporarily or permanently due to the operator itself unexpectedly running into trouble, there could very well be a one-time pay day for short-sellers in that instrument. Even ETFs just rumored to be negatively affected by an event not directly related to the underlying could suffer in a volatile market. If the ETF operator would effectively kill off any such rumors as the markets stabilize, the performance of its ETFs is likely to have been hampered by the operator being forced to stay defensive in its operations as a disorderly market actively complicates its pricing by both liquidation of longs and by speculative short-sellers trying to handicap potential problems.

3) Focus on ETFs with concentrated counter-party risk

ETFs with concentrated synthetic counter-party risk, in e.g., total return swaps, are preferable to short over those employing exchange-cleared derivatives such as futures. The suppliers of such synthetic derivatives, i.e., international investment banks in most cases, may suddenly default on these obligations, a risk that is heightened during a volatile period of financial turbulence such as during 2008. Short-term, this means that the ETF could effectively stop tracking its targeted strategy, as the operator will most likely will go defensive at the same time investors being long these ETFs will offer to dump their positions at substantial discounts in relation to the last known NAV (about which there is now heightened day-to-day uncertainty), at least until there is clarity about the ETF going forward.

4) A few words on why dividend distributions are not a key issue

Among other operational factors, I would like to bring up the occasional cash dividend distributions made by daily leveraged ETFs, often motivated by taxation considerations. I would, in short, argue that these distributions are not a major issue for a prudent short-seller using margin conservatively. This is because as long as the ETF strategy is unchanged, major dividend distributions will not change the risk-return profile one could expect from a certain daily leveraged ETF over the medium- to long-term. There can be a market signaling effect, though, where a wide price/NAV-discount narrows following a large dividend (in relation to total NAV).

Minimizing the risk of blowup when shorting leveraged ETFs

Before considering entering a short position against a leveraged ETF, always have a risk management plan in place that is appropriate for the instrument shorted and your own risk preferences. If doing outright short-selling, below are some suggestions on factors to consider in order to get control over your risk. Shorting by employing only options on the ETF itself can be a very viable alternative beyond the scope of this article. The experienced speculator/trader should thoroughly research using options as an alternative, both in hedging as well as in adjusting the desired short exposure.

1) Market view and view on the fundamentals of the underlying

The underlying asset should be an asset that has fundamentals you can understand. Also, at least to some extent, the ETF's exposure to the asset should be understood. If the exposure is poorly structured, that is very favorable, but it is key that you understand how the ETF will try to track the underlying in different market scenarios.

2) Position sizing

Keep position size small relative to your worst case scenario if putting on an outright short. For example, it is not advisable to consider putting on an outright unhedged one-directional medium- to longer-term short position with, say, >25% of your total capital against a single 3x daily leveraged Bear ETF on a volatile underlying, regardless of your level of conviction. You will need to be smarter than that to protect your capital due to the extreme drawdowns that can occur along the way.

3) (Tail)hedge(!)

Putting on some sort of tail hedge when entering an outright short strategy will improve your risk-reward and make the trade more effortless to manage. This hedge could be a minor allocation to a short position in the opposite direction (i.e., actually a very skewed double-short pair strategy), a strategy that may require active rebalancing during volatile markets. More on this strategy below.

Or you could buy ATM or OTM call options on the underlying with a medium- to long-term expiration date (may be unfeasible if volatility pricing is too steep). And as an extension, you can combine buying and selling different options.

While not really a tail hedge, dynamic delta-hedging with the underlying asset itself, futures or forwards could quite effectively limit the most extreme short-term pain, but will require competitive transaction costs and active monitoring. This hedging also has a big disadvantage in that you are still exposed to opening gaps in the price of the underlying.

4) Diversification across best daily leveraged ETF short-selling ideas

If, after careful consideration, you manage to find tradable strategies across multiple underlyings that, to some extent, have fundamentals that differ from each other, you could diversify over several positions. One should not have overconfidence in the protective effect of diversification, and use diversification as a justification to add on risk-reward profiles one would not have even remotely considered in an individual trade, but some execution risks, such as the potential withdrawal of borrowed units by the broker, will most likely not be perfectly correlated events. Also, there could be beneficial effects of being diversified if ETF intraday pricing goes out of whack at random under a flash-crash scenario, or if a specific ETF operator abruptly shuts down.

A few potential strategies to explore

Below I outline two basic strategies employing outright shorts in daily leveraged ETFs. These basic strategies are pretty versatile, and can be adjusted to accommodate both unfolding price action and/or the speculator changing view on the market. With conservative position management in place, these strategies would not be entirely different to selling options, while getting an edge in the poor longer-term dynamics of the shorted instruments. In line with selling options, these strategies are potentially very high risk.

1) Double shorting both sides of a daily leveraged ETF pair

My personal favorite, since it involves the possibility to dynamically adjust the desired directional exposure in a rather straightforward way, as long as trading conditions are favorable. It is potentially a good medium- to long-term strategy for any daily leveraged ETF pair on an underlying that, for some good reasons (fundamental or market mechanics related), can be expected to be volatile over time, preferably in a see-saw type market, but volatility in itself can be desirable even if the asset will be directionally trending medium- to long-term. The next section will finish off this article with an example of this strategy.

This strategy can also involve options and/or other derivatives on the ETFs, or on the underlying asset to adjust the risk-return profile of the trade.

2) One-directional bet

The focus of Part 1 of my article was the volatility drag on these ETFs, an effect partly isolated in the above double pair short-selling strategy. But given that one has a clear market view and is willing to take on additional risk, I will also briefly cover some issues that are relevant if one wants to place one-directional bets by short-selling in single daily leveraged ETFs.

As already emphasized, if executed unhedged, one-directional strategies can lead to massive short-term pain if a breakout in the opposite direction of one's bet would occur. If not already in a one-directional short, entering a trade in either direction when volatility is at heightened levels and the ETF is potentially at a heightened price/NAV-valuation could offer an improved risk-reward. That is only if trading conditions (such as borrowing costs, the availability of units to borrow and margin requirements in the case of an outright short) are still reasonably attractive by then.

One-directional shorting of the daily leveraged inverse/Bear ETFs could be especially dangerous without a hedge/backstop in place, since it is not unrealistic that a negative shock to, for example, an equity index will lead to a multi-day series of continuous strongly negative daily returns in the underlying. The good news in such a scenario is that most markets would tend to pick up in volatility, and eventually, would start to experience rather sharp intra-day and daily counter-trend reversals upwards. When this happens, the discussed compounding behavior of the daily leveraged ETF will start to counteract some or all of the continued NAV-expansion during a significantly slowing or bottoming out phase of the price drop in the underlying.

This strategy can as well involve options and/or other derivatives.

Example: Shorting FAZ-FAS with rebalancing

I currently hold a small short position against the Direxion Daily 3x Bull/Bear Financials pair (FAS, FAZ), of the double short pair type trade just discussed. Without going into details about my motivation why I am short precisely this pair, I will just summarize that it is a highly liquid and easy to understand pair of instruments on an underlying sector index, which has historically been volatile and exposed to external shocks (e.g., market events and subsequent intervention), as well as day-to-day swings in market sentiment. Due to the huge current market capitalization of both FAZ and FAS, it is also possible for quantitative traders to front-run their daily rebalancing act, worsening slippage.

Currently leaning towards the possibility that the equity market at the moment is somewhat stretched and vulnerable to negative macroeconomic and geopolitical events, my current intention is to try to keep (note emphasis) my position's proportional short allocation in dollar terms at 40% to 60% in FAZ, while being short the remainder in FAS. In order to keep the level of effort and rebalancing frequency down, I have opted to allow for significant swings in my proportions by keeping position size down, but I do rebalance approximately monthly, even in this non-volatile market we have seen in the past few months. FAZ is likely to potentially spike more intensively than FAS, but also decays faster in a world where equities prices trend upward due to a combination of inflation and/or positive "real" growth trend in the earnings of U.S. financial institutions (given that the market valuation of these earnings stays constant). Thus, rebalancing to keep the FAZ/FAS position at somewhat the same magnitude is actually a more bearish positioning than one might intuitively think.

Going forward, I plan to rebalance my small position through the potential adverse scenario where a sharp and major correction occurs (e.g., a quick >20% cumulative correction in S&P 500), a task requiring plenty of room in the portfolio margin if shorting these type of instruments. The rebalancing act could be done in two basic ways; either aggressively by increasing the short allocation to FAS, or defensively by liquidating parts of the FAZ short position. If having room left to increase the size of the position during a very stressful market drop, the former will be more of a high return potential-high risk adjustment than the latter. If the price/NAV valuation of FAZ temporarily spikes, that would add a very direct cost to adjusting by selling off the increasing FAZ leg in the middle of a strong market plunge. But given that one has had a small initial position in the pair, the time after a plunge will be the time to go aggressive and increase allocation to the trade. I will start to tolerate being short an increasing dollar amount of FAZ in relation to FAS after having suffered rebalancing through a significant drop in the underlying, in anticipation of see-saw type action and/or a quick recovery. Would I fail in rebalancing during a market plunge, I would most likely become way too short FAZ in relation to FAS, and the total dollar amount shorted would increase dramatically (now mainly a short FAZ exposure).

Until we will see a market correction, any range-bound and/or continued steadily rising market will require relatively low effort to handle a 40% to 60% short allocation in FAZ (being short the remainder in FAS), given that the original position size is kept at a small proportion of the total trading portfolio. Focus is limited to keeping track of borrowing conditions and cashing in on any see-saw type price action and/or problems in the instruments themselves along the way.

For the sake of completeness, I should add to the example that would I become medium- to long-term bullish about the Russell 1000 Financial Services, I would rebalance to stay short 60-75% in FAZ (being short the remainder in FAS).

It should be added that I currently pay less than 7% per annum for the borrowed units in both FAZ and FAS, and that I would consider winding down the position if rates were to be adjusted to above 15% for more than a couple of weeks. And would I have access to U.S. options (unfortunately, which I do not have currently), I would thoroughly research the pricing of FAZ and FAS options with expiration dates > 6 months into the future to see if the cost of modifying the above strategy with options or going for an all-options strategy could not create a superior risk-reward.

Summary

Given the right trading conditions, short-selling leveraged ETFs may be a feasible and attractive medium- to longer-term trading strategy for active investors/speculators. Since it is also a very risky proposition, it is essential that each individual trader systematically review his/her own trading conditions, and trades only in instruments he or she is comfortable with, both concerning the fundamentals of the underlying asset, but also concerning the ETF structure.

As a starting point for the prospective short-seller, I have included an Appendix with a not all-encompassing list of U.S. traded 3x daily leveraged ETFs to consider for further research.

Going forward, a central question, in my view, would be: for just how long will these instruments stay available in the marketplace in their current form?

Discussion on the topic is appreciated in the comments below.

Appendix: U.S.-based 3x daily leveraged ETFs to further research

Daily Leveraged ETF (Ticker)

Underlying

Daily Leverage Target

Link

U.S. equity indices and REIT indices ETFs

Direxion Daily S&P 500 Bull 3x Shares (NYSEARCA:SPXL)

S&P 500 Index

+3x

Direxion

Direxion Daily S&P 500 Bear 3x Shares (NYSEARCA:SPXS)

S&P 500 Index

-3x

Direxion

ProShares UltraPro S&P500 (NYSEARCA:UPRO)

S&P 500 Index

+3x

ProShares

ProShares UltraPro Short S&P500 (NYSEARCA:SPXU)

S&P 500 Index

-3x

ProShares

ProShares UltraPro Dow30 (NYSEARCA:UDOW)

Dow Jones Industrial Average Index

+3x

ProShares

ProShares UltraPro Short Dow30 (NYSEARCA:SDOW)

Dow Jones Industrial Average Index

-3x

ProShares

Direxion Daily Mid Cap Bull 3x Shares (NYSEARCA:MIDU)

S&P Mid Cap 400 Index

+3x

Direxion

Direxion Daily Mid Cap Bear 3x Shares (NYSEARCA:MIDZ)

S&P Mid Cap 400 Index

-3x

Direxion

ProShares UltraPro MidCap400 (NYSEARCA:UMDD)

S&P Mid Cap 400 Index

+3x

ProShares

ProShares UltraPro Short MidCap400 (NYSEARCA:SMDD)

S&P Mid Cap 400 Index

-3x

ProShares

Direxion Daily Small Cap Bull 3x Shares (NYSEARCA:TNA)

Russell 2000 Index

+3x

Direxion

Direxion Daily Small Cap Bear 3x Shares (NYSEARCA:TZA)

Russell 2000 Index

-3x

Direxion

ProShares UltraPro Russell2000 (NYSEARCA:URTY)

Russell 2000 Index

+3x

ProShares

ProShares UltraPro Short Russell2000 (NYSEARCA:SRTY)

Russell 2000 Index

-3x

ProShares

ProShares UltraPro QQQ (NASDAQ:TQQQ)

NASDAQ-100 Index

+3x

ProShares

ProShares UltraPro Short QQQ (NASDAQ:SQQQ)

NASDAQ-100 Index

-3x

ProShares

Direxion Daily Basic Materials Bull 3x Shares (NYSEARCA:MATL)*

The S&P Materials Select Stock Sector Index

+3x

Direxion

Direxion Daily Energy Bull 3x Shares (NYSEARCA:ERX)

Energy Select Sector Index

+3x

Direxion

Direxion Daily Energy Bear 3x Shares (NYSEARCA:ERY)

Energy Select Sector Index

-3x

Direxion

Direxion Daily Financial Bull 3x Shares (FAS, see ticker link in example above)

Russell 1000 Financial Services Index

+3x

Direxion

Direxion Daily Financial Bear 3x Shares (FAZ, see ticker link in example above)

Russell 1000 Financial Services Index

-3x

Direxion

ProShares UltraPro Financials (NYSEARCA:FINU)

Dow Jones U.S. Financials Index

+3x

ProShares

ProShares UltraPro Short Financials (NYSEARCA:FINZ)

Dow Jones U.S. Financials Index

-3x

ProShares

Direxion Daily Gold Miners Bull 3x Shares (NYSEARCA:NUGT)

NYSE Arca Gold Miners Index

+3x

Direxion

Direxion Daily Gold Miners Bear 3x Shares (NYSEARCA:DUST)

NYSE Arca Gold Miners Index

-3x

Direxion

Direxion Daily Healthcare Bull 3x Shares (NYSEARCA:CURE)*

The S&P Health Care Select Sector Index

+3x

Direxion

Direxion Daily Natural Gas Related Bull 3x Shares (NYSEARCA:GASL)

ISE Revere Natural Gas Index

+3x

Direxion

Direxion Daily Natural Gas Related Bear 3x Shares (NYSEARCA:GASX)

ISE Revere Natural Gas Index

-3x

Direxion

Direxion Daily Real Estate Bull 3x Shares (NYSEARCA:DRN)

MSCI US REIT Index

+3x

Direxion

Direxion Daily Real Estate Bear 3x Shares (NYSEARCA:DRV)

MSCI US REIT Index

-3x

Direxion

Direxion Daily Retail Bull 3x Shares (NYSEARCA:RETL)*

Russell 1000 Retail Index

+3x

Direxion

Direxion Daily Semiconductor Bull 3x Shares (NYSEARCA:SOXL)

PHLX Semiconductor Sector Index

+3

Direxion

Direxion Daily Semiconductor Bear 3x Shares (NYSEARCA:SOXS)

PHLX Semiconductor Sector Index

-3x

Direxion

Direxion Daily Technology Bull 3x Shares (NYSEARCA:TECL)

Technology Select Sector Index

+3

Direxion

Direxion Daily Technology Bear 3x Shares (NYSEARCA:TECS)

Technology Select Sector Index

-3x

Direxion

International equity indices ETFs

Direxion Daily China Bull 3x Shares (NYSEARCA:YINN)

BNY Mellon China Select ADR Index

+3x

Direxion

Direxion Daily China Bear 3x Shares (NYSEARCA:YANG)

BNY Mellon China Select ADR Index

-3x

Direxion

Direxion Daily Developed Markets Bull 3x Shares (NYSEARCA:DZK)

MSCI EAFE Index

+3x

Direxion

Direxion Daily Developed Markets Bear 3x Shares (NYSEARCA:DPK)

MSCI EAFE Index

-3x

Direxion

Direxion Daily Emerging Markets Bull 3x Shares (NYSEARCA:EDC)

MSCI Emerging Markets Index

+3x

Direxion

Direxion Daily Emerging Markets Bear 3x Shares (NYSEARCA:EDZ)

MSCI Emerging Markets Index

-3x

Direxion

Direxion Daily India Bull 3x Shares (NYSEARCA:INDL)*

Indus India Index

+3x

Direxion

Direxion Daily Latin America Bull 3x Shares (NYSEARCA:LBJ)*

S&P Latin America 40 Index

+3x

Direxion

Direxion Daily Russia Bull 3x Shares (NYSEARCA:RUSL)

Market Vectors Russia Index

+3x

Direxion

Direxion Daily Russia Bear 3x Shares (NYSEARCA:RUSS)

Market Vectors Russia Index

-3x

Direxion

U.S. bond indices ETFs

Direxion Daily 7-10 Year Treasury Bull 3x Shares (NYSEARCA:TYD)

NYSE 7-10 Year Treasury Bond Index

+3x

Direxion

Direxion Daily 7-10 Year Treasury Bear 3x Shares (NYSEARCA:TYO)

NYSE 7-10 Year Treasury Bond Index

-3x

Direxion

Direxion Daily 20+ Year Treasury Bull 3x Shares (NYSEARCA:TMF)

NYSE 20 Year Plus Treasury Bond Index

+3x

Direxion

Direxion Daily 20+ Year Treasury Bear 3x Shares (NYSEARCA:TMV)

NYSE 20 Year Plus Treasury Bond Index

-3x

Direxion

ProShares UltraPro Short 20+ Year Treasury (NYSEARCA:TTT)*

Barclays U.S. 20+ Year Treasury Bond Index

-3x

ProShares

Note: List includes 3x daily leveraged ETFs listed on the website of their respective operator on February 24, 2013. ETF categorization by author. This list will not be updated. * = No opposite direction 3x daily leveraged ETF available from the same operator.

Source: Short-Selling Daily Leveraged ETFs: Some Practicalities To Consider