Tagged Questions

A **leveraged ETF** is an ETF which seeks to deliver some multiple (frequently 2x) the **daily** performance of a benchmark index. However, over multiple days it will **not** return 2x the index. **You should not buy and hold a leveraged ETF for any more than a couple of days at a time.**

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2
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1answer
56 views

What Russell 2000 price action would move TZA on the upside back to its 6000 level?

Is it possible to see TZA at 6,000 ever again? What kind of decline in the Russell 2000 would it take? Since TZA was originally at 6000 and now at 15, is it possible, with a huge future downturn in ...
3
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2answers
155 views

Geared ETFs - Do they offer more than 3x leverage?

I'm very interested in geared ETFs. It appears that the highest available gear ratio is 3x the underlying security (or index). Is this due to regulation, mathematics, or market demand?
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votes
1answer
404 views

What is the daily rebalanced leverage ratio that is ideal for the S&P 500 based on past performance?

This question assumes an investor with a very low risk-aversion coefficient. The risk-aversion coefficient is basically the 2nd-derivative of an investor's utility function as a function of money. An ...
5
votes
5answers
550 views

Can you beat the market by investing in double long ETFs?

Certain ETFs double the daily rate of return of certain indices. Can you use such ETFs to beat the market (not on a risk-adjusted basis, just in terms of pure returns)? I have read that When ...
10
votes
3answers
396 views

Investing in a leveraged index ETF for retirement. Risky?

I'm 23, and in addition to my 401k at work, I have a few thousand saved in an IRA. Right now I have it sitting in Treasurys earning around 3%. Over the past 50 years the S&P has averaged around ...
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