As I mentioned in my previous post I am attaching my analysis of the 2x leveraged ETFs. I took the real-time data of the Dow Jones and analyzed the performance of the 2x long (Ticker: DDM) and 2x short (Ticker: DXD) ETFs. I chose a period in which the Dow starts with particular level, drops down and few days later ends up slightly lower than the starting level.
In this period the Dow index is down ~15%. You would see the DDM (2x long) is down ~32% (As you would expect). BUT look at the DXD (2x short) is only up ~15%!!! You would think you would be up ~32%
No matter what the management get its fees. The house always wins!
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