Leveraged And Inverse ETFs by Leslie N. Masonson
Investors and traders looking for market-beating returns might consider placing a small portion of their assets in leveraged ETFs, especially in trending markets. Typically, it’s recommended to hold a leveraged ETF for only one day, due to its daily reset and possible negative compounding if it declines. But does that advice always hold true? Multiyear returns for 3X bullish leveraged ETFs have been exceptional since 2010. Here, we’ll take a look.
Leveraged exchange-traded funds and inverse exchange-traded funds (ETFs) are types of funds that came on the scene in 2006 ...