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But where are the 3x funds that pay 3x the dividends?
by kgwgk 6y ago
But where are the 3x funds that pay 3x the dividends?
- paulpauper 6y agofutures and swaps do not pay dividends, so the dividends on 3x funds are imputed in the nav, adjusted incrementally everyday . I compared a 3x of the DIA (UDOW) to the 1x version and found that the 3x outperform in such a way that the only reason for the discrepancy is 3x dividends.
- kgwgk 6y agoOk. Leveraged ETFs are very dangerous animals, though. UDOW lost 17% in 2020 while DIA went up 8%.