Direxion Daily Financial Bear 3X Shares (FAZ)

[Porgie Tirebiter]

Not to me it doesn't. These funds have high margin requirements and are capable of some pretty serious moves against you while you are holding the short position. The cost of margin is probably going to eat up most of the time decay advantage.

In addition, you would have to hold a lot of cash in your account or risk liquidation at a price far higher than what you got for the shares, and forced liquidation of unrelated holdings to pay the difference.

Huge, huge risk. Why go there?

It is far safer to take a hedged position in the inverse fund than to short shares directly.