/biz/ - Business & Finance

>>50030941
The daily re-leveraging and "decay" is not as bad as the retards here say it is, at least skim this paper
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2741701

The real gotcha is that Proshares or Direxion can shut it down at any time and liquidate your shares for whatever the fair value is. And they'd be motivated to do so if we're in an extended bear market because the outflow from people fleeing their ETF and thus reduced Assets Under Management makes it less profitable to run the ETF. In that scenario you would have to scramble to throw your leftovers into a similar ETF and hope that a strong bull run happens and gives you your money back.