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No, it's completely fair. Leveraged ETFs rebalance in such a way that the losses compound faster than the gains. If they did no rebalancing (i.e. started out wi
by byrneseyeview 17y ago
No, it's completely fair. Leveraged ETFs rebalance in such a way that the losses compound faster than the gains. If they did no rebalancing (i.e. started out with $100M in cash and $200M in debt, and kept the $200M no matter what the equity price did) the decay wouldn't happen.