The curious case of leveraged ETF | stockbee

2/19/2009

The curious case of leveraged ETF

FAZ Direxon Financial Bear 3X

FAS Direxional Fianacial Bull 3X

One month returns using



100 * (C - C21) / C21



FAZ: -0.81% c1=62.61 c=62.10

FAS:-54.41% c1=12.81 c=5.84

Lot of people do not understand how these leveraged ETF work. The bearish leveraged ETFs can have strange moves.

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