03.08.2016 - The Hidden Danger of Leveraged ETFs
Leveraged exchange-traded funds (ETFs) pose several dangers for retail investors tempted by potential high returns in a short period of time. High expense ratios and decay are big issues for leveraged (ETFs). These two factors alone eat into profits and exacerbate losses. This is not how you want to invest. However, there is a bigger problem with leveraged ETFs. They can entice those prone to gambling. Since greed can be a driving force of human nature (for some), there is going to be demand for leveraged ETFs. Some retail investors look at this way: Why wait a year or more for a 10% return when I can have it in a day?..............................................Full Article: Source
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