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That is on a daily basis only. This means that over the long term, you will have the same performance as the S&P 500. Twice up and twice down gets you to the same spot.

Well, no. That bit about "daily" is them in a non-alarming way saying the equivalent of "that girl you are talking to is the girlfriend of José (for us old-timers who remember the song -- http://www.youtube.com/watch?v=bu9ZepcV0CM ).

Daily rebalancing means that the asymmetric returns work against you.

From the prospectus:
"Because of daily rebalancing and the compounding of each
day’s return over time, the return of the Fund for periods longer
than a single day will be the result of each day’s returns
compounded over the period, which will very likely differ from
two times (2x) the return of the Index over the same period
.

"The Fund will lose money if the level of the Index is flat over time,
and it is possible that the Fund will lose money over time even if
the level of the Index rises
, as a result of daily rebalancing, the
Index’s volatility and the effects of compounding."

I have to admit, these things are so complicated that I have to study and study to understand what the problems are, and then I finally get it. But a week later I no longer understand it and it seems all good again, so I have to study & study it again and then finally understand it again. But in a week I've lost that understanding again. Bummer.

So I finally put them on my list of "things that sound good on the surface but are really really bad and you'll never understand them, so just run away, m'kay?"


These funds can be traded profitably, .... Just be in the long fund when the market is going up and in the inverse fund when the market is going down.

Ha! Why did I never think of that!!?? ;:facepalm:: ;-)

Did you forget to put in a smiley?
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