It reduces their value compared to a theoretical benchmark, not compared to investing in the same things without leverage over the long run, although the gap is smaller than you’d expect and you’re taking on more risk. Also, there are the management fees with leveraged ETFs, too.
Not rebalancing frequently seems riskier if you’re using leverage, since you can go negative.
It reduces their value compared to a theoretical benchmark, not compared to investing in the same things without leverage over the long run, although the gap is smaller than you’d expect and you’re taking on more risk. Also, there are the management fees with leveraged ETFs, too.
Not rebalancing frequently seems riskier if you’re using leverage, since you can go negative.