But, there's also this:
The Long Term Behaviour of Leveraged ETFs
Double-Digit Numerics - Articles - The Big Myth about Leveraged ETFs
"There is a big myth about leveraged ETFs that has been recently propagated in the media. This article corrects the myth and explains the faulty reasoning that gave rise to it.
The myth is:
Leveraged ETFs are not suitable for long term buy and hold
This myth is expressed in various ways. Some quotes from the internet about leveraged ETFs:
“unsuitable for buy-and-hold investing,” “leveraged ETFs are bound to deteriorate,” “over time the compounding will kill,” “leveraged ETFs verge on insanity,” “levered ETFs are toxic,” “levered ETFs [are] a horrible idea,” “…practically guarantees losses,” “in the long run [investors] are almost sure to lose money,” “anyone holding these funds for the long term is an uneducated lame-brain.” “Warning: Leveraged and Inverse ETFs Kill Portfolios.”
There is even an article comparing these ETFs to swine flu.
These claims are not backed up with mathematics and data. This article rectifies that deficiency and finds that the claims are false. ..."
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