Leveraged or geared exchange-traded funds are undeniably one of the most criticized asset classes around. The criticisms are the same today as they were several years. Leveraged ETFs are expensive. They are not buy-and-hold instruments. Over long time-horizons, they deviate wildly from their stated objectives.
All fair, true and redundant points. The point worth rehashing with leveraged ETFs is that, ultimately, the greatest danger is the psyche of many of the end users of these products. It has been lamented in this space that many traders are simply born wired with “long only” beliefs. The successful ones learn and work their way out of that rigid thinking.
Another important point with leveraged ETFs reminds us of the old Wall Street saying “Markets can stay irrational longer than you can stay solvent.” Well, we're not saying the market for gold miners ETFs, such as the Direxion Daily Gold Miners 3X Bull Shares ...
/www.benzinga.com/trading-ideas/long-ideas/16/07/8216234/the-disaster-gold-etf-trade-no-one-is-talking-about alt=The Disaster Gold ETF Trade No One Is Talking About>Full story available on Benzinga.com
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