Simple Mathematical Lesson Relating to Leverage ETFsExample: Starting price of a ETF $10, Starting price of commodity $10. We make the price the same just to make it easy to compare what happens.
Price of commodity to $11, that's a 10% increase of $1.
That mean ETF increase 20%, which would be $2, so the ETF is now $12.
Commodity drops back to $10. That's a decrease of $1 from $11, which is -9.090909%
That means ETF drops -18.181818% x $12 = $2.18.... The ETF is now $9.82 !!!!! NOT back to $10 like the commodity!
Commodity goes from 10 to 11 back to 10
ETF goes from 10 to 12 down to $9.82
And that's just on one up and down in price.
Now do you see what you are up against. MATH and TIME.