Leveraged ETF Performance (6/5/09)

Below we highlight the year to date performance of the various leveraged and inverse ETFs. Out of the 112 that we track, 29 are up year to date while 83 are down. As shown below, the 2x long silver ETF (AGQ) is up the most at 65%. The 2x inverse long-term Treasury ETF (TBT) is up the 2nd most at 51%, followed by 2x technology (ROM), 2x Nasdaq 100 (QLD), and 2x basic materials (UYM).

The 3x inverse financials is down the most year to date with a big decline of 87.29%. Interestingly, the 3x long financials is also down big with a decline of 60%. This financial index that these two ETFs track is down 0.24% year to date. Go figure.

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Comments

[kkerr:]

The compounding effects for leveraged bull ETFs that trend upward with little volatility, yields excellent returns.

Jun 05 05:19 PM

[Sicall:]

You rightly point out the fact that FAZ and FAS are both down. I have heard that some people have been shorting them both and made a lot of money.

As the nature of these (x3) leveraged ETFs is that they degrade over time this should be a no lose trade. However volatility has made this trade more succesful than it should be in the short time they have been around.

I would also like to know who would be dumb enough to loan them to shorters?

Jun 06 07:14 PM

[Alan Young:]

29 up, 83 down. That should tell you all you need to know about holding ANY leveraged ETF for months at a time.

Jun 06 07:20 PM

[Dukk:]

DXO is up 159% bettween 2/18 and 6/2.

Jun 06 07:22 PM