Are Triple Leveraged ETFs suitable for long-term holding?

Ernest Chan | Mon, 07/27/2009 - 11:34am | Add a comment

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Triple leveraged ETFs marketed by Direxion have been all the rage lately. The fund management company says that they do not recommend buying and holding these ETFs. But is there any mathematical justification for this caution? Before I answer this, it is interesting to note that these ETFs (e.g
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› Ernest Chan

Ernie is a quantitative trader and consultant who helps his clients implement automated, statistical trading strategies. He can be reached through www.epchan.com. Ernie has worked as a quantitative researcher and trader in various investment banks (Morgan Stanley, Credit Suisse First Boston, Maple Securities) and hedge funds (Mapleridge Capital, Millennium Partners, MANE Fund Management) since 1996. He has a Ph.D. in physics from Cornell University.

Trading > Quantitative Trading

Are Triple Leveraged ETFs suitable for long-term holding?

Ernest Chan | Mon, 07/27/2009 - 11:34am | Add a comment

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› Ernest Chan

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