Understanding Levered ETFs and Geometric Returns [View article]
I would like to know what happens with a 3x ETF when the underlying index goes 33.3% against it. Does the ETF just go to zero and die? Obviously, the same question applied to 2x ETFs if the index goes 50% the other way. I know it's a far fetched scenario but I wonder.
Understanding Levered ETFs and Geometric Returns [View article]