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Leveraged ETFs: Is Tracking Error Really So Troublesome?

Thank you for the numerical analysis, although I must admit it goes against my personal experience in trading these.

I first tried holding a few of these for several months, and they generally moved as they were supposed to over a several day period. However, over a several month period, the actually went the opposite the direction they were supposed to.

I'd be curious to see a similar analysis by overlaying charts from different time periods. A picture can tell a story that thousands of words cannot.

Distressing Details of the UltraShorts

I agree that these things should not be held in any portfolio longer than a day. I actually made an attempt at using a few of these, and figured out real quick that they didn't work over any period of time. The prospectus is equally useless in disclosing how they really perform.

There is nothing more frustrating than realizing your investment thesis was correct while watching your investment vehicle do the opposite of what it should.