Lynn

UltraShort ETFs: Is Betting Against the Dow Still the Way to Go?

Double shorting an index on a daily basis does not necessarily double the negative return of the index over the long term. For example, if the index drops 10% on 2 consecutive days: 100 -> 90 -> 81 The index falls 19%. If the double short ETF rises 20% on 2 consecutive days: 100 -> 120 -> 144. It rises 44% (not 38%).