cma

The Pitfalls of Using Inverse ETFs

"In a scenario where volatility is low, inverse ETFs are powerful tools for long term investors. When volatility is high, the ETFs should be used as trading vehicles that allow you to express a short term view."
Since investors have no way of knowing what volatility will be, all the ETFs that use swaps, etc. are like buying options: the buyers suffer from time decay, often a great deal of it. They are a loser's game.