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bsharvy » Comments » BGZ

  • Grading Leveraged ETF Performance [View article]
    Rydex has some of these funds too, and with lower fees.
    Jun 13 09:56 am |Rating: 0 0 |Link to Comment
  • Understanding Triple Leveraged ETFs [View article]
    That makes absolutely no sense. They are rebalanced every day, therefore, the leverage is 3x every day. Your leverage after holding them a while can't be any different from someone who just bought them. The shares are identical.

    On Apr 08 01:22 PM Ron Rowland wrote:

    > The reason these things work this way is because the daily reset
    > of the leverage results in higher "effective" leverage every day
    > the trend continues to move in your direction.
    >
    > For example, say you buy a 3x fund that moves in your direction for
    > a few weeks and you are now sitting on a 100% gain. At that time
    > your leverage is about 6x from where you started. And most importantly,
    > it is at 6x at the worst possible time - when the trend reverses.
    > So now you have 6x leverage working against you.
    Apr 10 19:17 pm |Rating: 0 0 |Link to Comment
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