GeorgeK

Tracking Trouble for the Triple-Levered ETFs

I understand how daily rebalancing means that a levered etf will underperform the fund, and dramatically so if there is high volatility. I was attracted to short etfs because I was reluctant to change my brokerage account to a margin account so I could short. However, using the mathematics of daily rebalancing, you could basically be guaranteed to make money by shorting both the long and short levered etfs of a volatile index. Using this method you would have made about 27% on erx and ery in less than a month. Is there anything that would prevent you from doing this?