I will take the first shot at this.
In the past I have traded these 2X long and short ETF type funds from ProShares. I haven't owned any since last fall when I sold out on that strong rally.
They seem to work well whenever the market is in a trading range. You can pick up more trades than normal because of their inherent volatility versus the average actively managed mutual fund or index fund.
The problem occurs whenever there is a market meltdown as we have seen recently. Whereas a stock can only go to $0, with these funds and the leverage they employ, they can continue to fall further. In a market meltdown like we have seen your cash will be burned up in a hurry.
Again, these are good investment vehicles in a trading range type market.
Anyway, that has been my personal experience.
Best regards,
Ray
