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The Compounding Error of ETFs and Leveraged ETFs

Posted by OEX 291 days ago (http://factoidz.com)
Category: Funds and ETFs | Tags: etf etfs trading leveragedetf inverseetf
When you buy a 2x or 3x leveraged ETF, you would expect to get that profit if the index moves the right direction. Because of the compounding error of ETFs, you might not get the return you expected. You should be aware of this compounding error.
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