Why 3x Leveraged ETFs Lose Money in Sideways Markets
Daily resets make leveraged ETFs lose to volatility. Avellaneda and Zhang’s formula: the drag grows with variance, even if the price ends flat.
#volatility-decay
1 articles
1 articles
Daily resets make leveraged ETFs lose to volatility. Avellaneda and Zhang’s formula: the drag grows with variance, even if the price ends flat.