Ultra and Inverse ETFs: The Downside of Doubling Up [View article]
The math is a little tricky, but Ultra Short ETF's certainly do show price erosion over time. It's easier to look at a chart to show how this works.
Here's a perfect example. Note that the chart shows that when the lines cross, the intersections occur at lower levels over time. If it were true that ultrashorts provided a true 2:1 return, then the intersections on these charts should always occur at the 0% line.
Ultra and Inverse ETFs: The Downside of Doubling Up [View article]
Ultra and Inverse ETFs: The Downside of Doubling Up [View article]
finance.yahoo.com/q/bc...
Ultra and Inverse ETFs: The Downside of Doubling Up [View article]
Here's a perfect example. Note that the chart shows that when the lines cross, the intersections occur at lower levels over time. If it were true that ultrashorts provided a true 2:1 return, then the intersections on these charts should always occur at the 0% line.
finance.yahoo.com/q/bc...