Returns at These ETFs Could Shock You - Part 1 - Morningstar Video

[irontrader50]

Nice perspective about long term investment on leveraged ETFs. Thank you!

[rthawk55]

they don't work over longer holding periods for most people, because most people time their buys and sells incorrectly, I guess these guys weren't around for that run in AGQ

[Luiyi385]

This video is going to save me a lot of money, thanks.

[jayangli]

r they just talking u.s etfs or all includin europe

[miasma1616]

plus these guys look like choad monkeys

[cboyke]

If holding Ultra and UltraShort ETFs over time is a guaranteed losing strategy, then, by definition, selling them short should be a guaranteed winner. A simple approach would be to sell short equal dollar amounts of both the Ultra and the UltraShort ETF, and hold your short positions open for a long period of time. You would make money regardless of market direction.

[liushawki]

Well, they are not necessarily a losing strategy, the point is that some investors think about yearly return, as for a winning strategy it will depend on the timing of portfolio liquidation, it should be after few up moves. I wonder why ETFs that track 1 year return do not exist?

[miasma1616]

@cboyke

I ran some test on FAZ and FAS and what I came up with was - yes. You are correct. Holding an equal amount of both ETFs, you would have a 12.1% return in one year.

[i4Truth]

Outstanding video! In spite of all the garbage on youtube, there are some real hidden gems like this. Five big ones.....

[mombooga]

Explain both up side and down side to be fair then let people evaluate their own risk.

[mombooga]

This is not a practical example. Even tho it explains the math and how these lev etfs work, the market rarely goes up one day, down the next, up the next, down the next and so forth. If the market goes in your direction two days in a row then the profits add up. However, it is definitely a very short term as volatility is not good in this case..

[Jacobin777]

I do agree with its not a completely practical example, but I think it does do a good enough of a job for at least someone willing to risk money on these ETF's to look into them much further.....and I think that was the basic goal of the video.

[hispeed007]

Nice job.  Key is "daily" performance.