Leveraged ETFs and their Unleveraged counterpart

MikeNN · September 8th, 2010, 4:06 pm

Has anyone taken a look at comparing leveraged ETF compared with their non-leveraged counterpart? Does anyone know if there is a good way to compare the two on the long run (beyond their daily re-leveraging)? Any thoughts and insights appreciated.

CEexs · September 15th, 2010, 5:37 pm

in the long run, people may experience that the leveraged ETF underperformed the regular ETF although the index is higher than at the time they bought due to realised vol

eh · September 16th, 2010, 7:39 am

QuoteOriginally posted by: MikeNNHas anyone taken a look at comparing leveraged ETF compared with their non-leveraged counterpart? Does anyone know if there is a good way to compare the two on the long run (beyond their daily re-leveraging)? Any thoughts and insights appreciated.Avellaneda has published some stuff on this: http://math.nyu.edu/faculty/avellane/

daveangel · September 16th, 2010, 7:44 am

you might also want to look at this thread which discusses Ultra short funds