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  • Five ETF Predictions for 2009 [View article]
    Jaba, the math behind products that reset their leverage on a daily basis has been understood since 1993 with the introduction of Rydex Nova (RYNVX). Leveraged products (ETFs & Mutual Funds) are not long-term investments and will not produce 2x (or 3x) the underlying index for any period longer than a day. I would hope that the SEC has better things to do than to investigate mathematics. I guess DTO is a failure too, since it returned 500% of its underlying index last year instead of just the 200% that you probably believe it should have. The lesson for everyone here is not to use products you do not understand.
    Jan 07 17:37 pm |Rating: +3 0
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