In our last post we looked at non-leveraged ETFs, and below we highlight the best and worst performing leveraged ETFs so far in 2009. Even though the market is trading close to flat year to date, only 27 of the 110 leveraged ETFs that we track are up for the year. The double long technology ETF (ROM) is up the most at 36.37%, followed by the double long semiconductor ETF (USD), the double long QQQs (QLD), and the double short long-term Treasury ETF (TBT). The second best performing double short ETF is the Japanese Yen (YCS).
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The list of the worst performing leveraged ETFs this year shows just how crazy these products can be. The two worst performing leveraged ETFs in 2009 are the three times financial short and long securities! FAS (long) and FAZ (short) track the Russell 1,000 financial sector, which is down a little more than 2% this year. Even though the sector is down, the 3x short ETF (FAZ) is down more than the long one. And they're both down by huge amounts even though the sector itself is only down a couple hundred basis points. FAZ is down 82%, and FAS is down 62%! Wow.