Replies to post #60032 on SPDR S&P 500 (SPY)

[XBrit]

OK you got me interested, so I did the math for a double positive fund.

Consider investing $1000 in fund QLD, the double long of an index QQQ that starts at 1000. Assume the index goes up and down by 100 points over and over.

 
 Day   QQQ    %change   2x%change   QLD 
 0     1000   -         -          1000.00 
 1     900    -10.0%    -20.0%      800.00 
 2     1000   +11.1%    +22.2%      977.60 
 3     900    -10.0%    -20.0%      782.08 
 4     1000   +11.1%    +22.2%      955.70 
 

So the answer is:

The double long funds also leak, but not as badly as the double inverse ones.