Thursday, January 05, 2023 4:25:17 PM
2 months is a long time to be holding a 3x ETF. Below is the estimated decay for your example.
Approximately a 7.5% 'holding cost' is represented by the purple decay line I drew on the ETF pair chart below. The sideways chop the market has been going through the past few weeks would make this decay more noticeable too.
The 1x ETF would remain basically unchanged during sideways chop, but a 2x, and more so a 3x ETF of the same equity would display decay. GLTY
https://stockcharts.com/h-sc/ui?s=TNA&p=D&yr=0&mn=2&dy=0&id=p14976638344
Approximately a 7.5% 'holding cost' is represented by the purple decay line I drew on the ETF pair chart below. The sideways chop the market has been going through the past few weeks would make this decay more noticeable too.
The 1x ETF would remain basically unchanged during sideways chop, but a 2x, and more so a 3x ETF of the same equity would display decay. GLTY
https://stockcharts.com/h-sc/ui?s=TNA&p=D&yr=0&mn=2&dy=0&id=p14976638344
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