Replies to post #7583 on VelocityShares Credit Suisse 3X Long Crude ETN (UWTIF)

[Ryantacular]

"Like many levered funds, it delivers 3x exposure only for 1 day. Over longer periods, returns can vary significantly from 3x exposure to its underlying index."

Like what happened to DWTI, if this rises fast enough, which it will, it will hit 8 come September. As the gains will be compounded and not simply 3X. So WTI could go up 34 % essentially, to see this hit $8. (144% higher)

[trdwatch]

I think the best argument for that is to go back to 2013 to mid 2014 and see the decay in DWTI relative to the price of oil until oil dropped. The decay became a non factor. The same could happen for UWTI going up.

[RBKissMyAs]

Explain DWTI's rise from 40 - 200 then. I'm all ears.