I'll offer an example here:
https://www.investopedia.com/articles/investing/121515/why-3x-etfs-are-riskier-you-think.asp
Some of these articles make it sound like some tooth fairy is going to emerge from the ethos and steal all the capital you have in your account. As if your position is just going to permanently vaporize forever.
I have invested in some inverse leveraged ETFs, and their performance over the last however many years has been just fine. If I buy the ETF at a low market price, why would it not eventually go back up, as it has cyclically over the course of maybe 10 years or more?
Is there something going on that is going to take money out of my position and steal some of the shares I own? Is the ETF somehow withdrawing cash from my positions?
Or is the concern limited to the simple performance of the fund? It would seem to me if the ETF itself has a long and successful track record of matching the movements of the underlying asset, why not buy low and sell high months down the road even if the ETF is meant to track daily movements?
Submitted May 27, 2021 at 07:09AM by Realistic_Airport_46 https://ift.tt/3vthPLx
