No. of Recommendations: 4
There is no doubt about the tracking error computations as well as the fees deducted. However there is still a pyramiding effect from the leverage application when markets are trending up.

This article from Seeking Alpha gives some interesting information about the longer term holds and returns. I have not done the calcs to be exact on the numbers but consider that if the 3X ticker only gives 2.5X return, compounding for several years can leave an ending balance many multiples higher than the B&H balance. The article has some interesting links to long term research papers and some interesting graphs of final returns.

The Trading Strategy That Beat The S&P 500 By 16+ Percentage Points Per Year Since 1928

With that title, the article attracted many comments, some are worthwhile to read. The author has several other interesting reads published at Seeking Alpha.
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