Study of ETFs and Leveraged ETFs and LEAPs
- 09/03/2024 – Clearing Up Some Beta Slippage Myths | Seeking Alpha
- A leveraged ETF in a steady bullish trend may outperform its leveraging factor.
- a steady bearish trend can also result in a leveraged ETF outperforming its leveraging factor
- When an asset is trending with little volatility, a leveraged ETF can bring an excess return over the leveraged asset.
- A leveraged ETF in a steady bullish trend may outperform its leveraging factor. But it depends on the sequence of losses and gains, and cannot be predicted or even calculated with a statistical model.
