Leveraged ETFs: Is Tracking Error Really So Troublesome? [View article]
WorkerOnWallStreet and cvhaus: interesting points about the tracking errors and the theoretical 0.5x index tracker.
You'd actually expect the 0.5x tracker to consistently slightly outperform half the index, on "interest" for the other half. Similarly, a 2x tracker should consistently slightly underperform on "interest."
Leveraged ETFs: Is Tracking Error Really So Troublesome? [View article]
You'd actually expect the 0.5x tracker to consistently slightly outperform half the index, on "interest" for the other half. Similarly, a 2x tracker should consistently slightly underperform on "interest."