
Why Leveraged ETFs Lose Money If You Hold Them Long
A 2x leveraged ETF promises twice the daily move, not twice the return. Here is why the index can round-trip to par while the 2x product sits 4% underwater, calculated across volatility levels.

A 2x leveraged ETF promises twice the daily move, not twice the return. Here is why the index can round-trip to par while the 2x product sits 4% underwater, calculated across volatility levels.