squark62

Leveraged ETFs: Beware the Performance Conundrum

proshares is probably the best xETF managers of the bunch. they've been around for several years and billions are invested in the best ETFs. no all of their xETFs work, but on the whole they perform better than the others.


On Apr 22 01:23 PM aarc wrote:

> This is a problem xETF managers will have to address and correct
> immediately.

Leveraged ETFs: Beware the Performance Conundrum

i trade leveraged ETFs in pairs. the only pair of the 3 the author charted, SDS & SSO are the only pair over the long-term you could arbitrage. from this perspective, the others charted are broken pairs trades. 2 other good pairs trades are DXD & DDM and QID & QLD. there may be some others but the 3 that work give you a good sense of overall market performance.

Leveraged ETFs: Is Tracking Error Really So Troublesome?

well marc, you sure stirred up hornets nest. as i've pointed out many times, pairing up long & short ETFs that specifically follow the same index (directly or inversely) is an excellent what to establish a hedge. the hedge can be correlated, non-correlated or neutral. it's up to the trader. weighted properly, using this type of method of hedging you effectively create your own asset class. this enables investors who manage their own ira to hedge since options trading is not allowed in retirement accounts, but holding these ETFs are. interested? checkout www.equityinformatics.com

Understanding Levered ETFs and Geometric Returns

like Luck-of-the-Irish, i too have benefited from quantitatively pairing short and long etfs to form a delta neutral hedge and profit during sudden down-turns in the market. does hamiltonian ring a bell?