07-03-2013, 09:26 AM
Part of the difference I've seen is that its based on the Russell 2k, which is much more about small business. It doesn't track DOW or S&P.
But also I get the sense that this triple leverage stuff doesn't always follow the mathematical plan....
If you look at the <!-- m --><a class="postlink" href="https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1372881600000&chddm=1326272&chls=IntervalBasedLine&q=NYSEARCA:IWM&ntsp=0&ei=djPUUdDwM4jAlgPMgQE">https://www.google.com/finance?chdnp=1& ... 4jAlgPMgQE</a><!-- m -->
Which is a non-leveraged Russell 2000 Index ETF, you see the same patterns. The TNA being leveraged is much more.
Remember that these guys running the ETF's are making money and overhead. When I have tried to investigate this in the past, I see a "leak" of value over time. ie, share goes up a dollar, triple leveraged goes up 2.9, shares go down a dollar, Triple leverage does down 3.1.
But also I get the sense that this triple leverage stuff doesn't always follow the mathematical plan....
If you look at the <!-- m --><a class="postlink" href="https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1372881600000&chddm=1326272&chls=IntervalBasedLine&q=NYSEARCA:IWM&ntsp=0&ei=djPUUdDwM4jAlgPMgQE">https://www.google.com/finance?chdnp=1& ... 4jAlgPMgQE</a><!-- m -->
Which is a non-leveraged Russell 2000 Index ETF, you see the same patterns. The TNA being leveraged is much more.
Remember that these guys running the ETF's are making money and overhead. When I have tried to investigate this in the past, I see a "leak" of value over time. ie, share goes up a dollar, triple leveraged goes up 2.9, shares go down a dollar, Triple leverage does down 3.1.
Maul, the Bashing Shamie
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"If you want to change the world, be that change."
--Gandhi