wheelsnaustin's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/443569/comments http://seekingalpha.com/article/146840-how-to-use-leveraged-etfs-to-your-advantage?source=feed#comment-582053 582053 Fri, 10 Jul 2009 09:49:16 -0400 http://seekingalpha.com/article/146840-how-to-use-leveraged-etfs-to-your-advantage?source=feed#comment-579905 579905 "Let‘s say the underlying index drops by 20% one day. To reach breakeven in the following day, it will have to rise 25%. The leveraged fund, however, will go down 40% on the first day and up 50% on the second day, leaving it at 90% of its original level. The numbers are unrealistic, but this is the kind of erosion you can expect over a long period of time"

]]> Wed, 08 Jul 2009 22:54:30 -0400 "Let‘s say the underlying index drops by 20% one day. To reach breakeven in the following day, it will have to rise 25%. The leveraged fund, however, will go down 40% on the first day and up 50% on the second day, leaving it at 90% of its original level. The numbers are unrealistic, but this is the kind of erosion you can expect over a long period of time"

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