Daily Leveraged Funds, Short and Long-term Performance
Introduction Daily leveraged funds have been the topic of numerous articles recently which have questioned whether they should be held for periods longer than a single trading session, and in turn, whether they are suitable for individual investors. Take, for example, the Russell 2000 Index (^RUT), the iShares Russell 2000 ETF (IWM), which tracks the index, and the various daily leveraged funds which attempt to track the index to the tune of -3x (TZA, Direxion Daily Small Cap Bear…