tradeking13

Long Term Investors Should Avoid Leveraged ETFs

Thanks for the knowledge. Most (including me) thought of these as leveraged ETFs, the same as using margin to buy the DIA. Obviously, not this is not the case.

Case in point:

10-Oct-08:
DIA: $83.60
DDM: $34.00

4-Dec-08:
DIA: $83.74
DDM: $29.42

DIA is basically flat while DDM is down 13%.

These ultras should only be used for daytrading.