Loading ...The problem with multiple ETF’s, the Triples and doubles, is that they are balanced every day and if the mkt gaps on the open and the fund is short of stock, it has to trade on the gap….so the fund can lose whatever the gap is. times the multiple.
In short if the stock/index goes from 10 to 100, with lots of gap openings, you will not get the full 90 point move, times the multiple. Their prospectuses clearly state, u make 3 or 2 times the Days move.
Simple ETF’s do not have such a large risk, as they are not multiples.