Leveraged ETFs do not go to zero due to decay

All of the leveraged ETF critics claim that due to volatility of up and down periods, leveraged ETFs will work their way down to zero due to decay.  In an uptrending market you get POSITIVE decay that enhances your return.  Since the DGR Strategy is designed to only be in stocks in uptrend markets, decay works in your favor.  Decay is actually a benefit.

UPRO, the 3X S&P 500 ETF, began in 7/1/2009.  Since it is still in existence today, it obviously has failed to go to zero despite the hue and cry against leveraged ETFs.

In fact it has appreciated by 1356% while the S&P 500 is up  a mere 163%.

So instead of going to zero, it has appreciated by over 8 times the S&P.

For more charts on the Dow Gold Strategy go to my public charts on Stockcharts.

Here’s the link:  Learn More