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Double and Triple ETFs Decay Their Value Faster - By Design ETFs with double and triple leverage relentlessly eat away an investment over time. Loosing money, because I didn't understand the inherent design of the decay of my principle going on, was an expensive lesson. Read this and you will never leave a leveraged ETF sitting in a retirement account long term. Down is the prevailing trend of every leveraged ETF - by design. [VIEW ARTICLE]Comments RSS Feed For This Article: 
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Subject: ETF value decay
I've noticed this same price 'decay' with ETFs, especially the leveraged ones. I would agree with your article and your math. However, I'm not sure the math applies strictly to ETFs, but also to stocks themselves, regarding the fact that a 10% drop now needs 11% to get even, but a 25% drop needs 33%, 50% drop needs 100%, etc... - It's a parabolic rise required the deeper the loss becomes. This article and the math REQUIRES investors to use stop losses, and I would set 4-10% as the maximum loss to accept before getting out of the losing position.
Good article! William "Jose" Sinclair.