matt...

Ultra and Inverse ETFs: The Downside of Doubling Up

I've read this same thesis many times, and it fails to account for the major benefit of these; the ability for the average Joe to "short" stocks easily and quickly. You mentioned this, and in my opinion it trumps the issue of daily vs. yearly tracking. I've been using SKF and SDS since last December, and have a made a good chunk (relative to my portfolio size) of change doing that. These provide an opportunity to go defensive more aggresivley than plain cash, and that's been the whole point for me at least.