Because of how they’re created, though, the value of these ETFs tends to decay over time. Inverse or leveraged ETFs typically try to track the daily performance of their target asset.

The strategy involves buying put options with strike prices 5% below the S&P 500’s market value. To offset the cost, the fund ...

Making them even less attractive, the higher the volatility of the underlying market, the worse the capital decay becomes. To be sure, if you pick a leveraged ETF and the underlying market moves ...

Single-stock ETFs get rebalanced every day, which results in higher fees. The derivatives that hold these funds together lose value due to time decay, and a single-stock ETF's long-term returns ...

The GraniteShares 2X Long COIN Daily amplifies Coinbase's price action, offering high returns but requiring careful risk ...

Because leveraged ETFs are designed for short-term trading, hold derivatives that suffer from time-loss decay and have aggressive turnover, they tend to underperform their target significantly in ...

As long as the stock or exchange-traded fund (ETF) stays within a set range, the sold options expire worthless, allowing traders to keep the premium while benefiting from time decay. While profits ...

Tidal Trust has filed for two funds, ANIM and WILD, that would add to the growing leveraged exchange-traded fund market.

For example, why the TQQQ ETF is down 16.4% instead of down 13.5% (a -4.5% loss for QQQ multiplied by 3). This is known as “decay.” Leveraged ETFs lose value over time due to daily ...