Friday, May 9, 2014

Why not hold leveraged ETFs long?


I can't help but see IWM (small caps index) as a buying opportunity. I understand it could go down much further but that is okay because at some point it will come back up to previous highs for a 10%ish gain on my investment.


I'm interested in 3x leveraged ETF ticker: TNA but keep reading how it is real risky to hold these for longer than a day or so. I understand, sort of, that TNA doesn't directly track the small cap index but I don't really get why that would keep someone from holding them long term (until small caps recover).







Submitted May 10, 2014 at 01:04AM by ToddTheFox http://ift.tt/1l16Mgd

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