Tracer,
These "Ultra" (leveraged) ETFs are instruments designed for professionals to implement a short term hedge. They are basically very short term instruments.
The prospectuses for these instruments makes it clear that they are "designed to achieve their investment objective on a daily basis meaning that they are not designed to track the underlying index over an extended period of time. Typically, the longer you hold a Leveraged or Inverse ETF, the greater your potential for loss. Accordingly, Leveraged and Inverse ETFs may not be suitable for investors who plan to hold positions for longer than one trading session. These products are designed for experienced traders who understand their risks, including the impact of daily compounding of leveraged instrument returns, and who actively monitor their positions throughout the trading day."
Hope that helps!
D
These "Ultra" (leveraged) ETFs are instruments designed for professionals to implement a short term hedge. They are basically very short term instruments.
The prospectuses for these instruments makes it clear that they are "designed to achieve their investment objective on a daily basis meaning that they are not designed to track the underlying index over an extended period of time. Typically, the longer you hold a Leveraged or Inverse ETF, the greater your potential for loss. Accordingly, Leveraged and Inverse ETFs may not be suitable for investors who plan to hold positions for longer than one trading session. These products are designed for experienced traders who understand their risks, including the impact of daily compounding of leveraged instrument returns, and who actively monitor their positions throughout the trading day."
Hope that helps!
D
