the_lazy_observer

Leveraged ETFs: Is Tracking Error Really So Troublesome?

Since the downside cannot go more than 100%, while the upside can exceed 100%, if you buy both long and short of the ETFs that follow the same index (ex.: FAS and FAZ), you'd either end up even (minus a small commission) or in profit. That's on a daily basis, since these reset daily. The net should be small but if you do it often enough, it should be profitable in the long run.

Triple Leveraged ETFs On Fire

Since the downside cannot go more than 100%, while the upside can exceed 100%, if you buy both long and short of the ETFs that follow the same index (ex.: FAS and FAZ), you'd either end up even (minus a small commission) or in profit.