#volatility-decay

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#3x-leveraged-etf #financial-select-sector #special-distribution #expense-ratio #leveraged-etfs
from24/7 Wall St.
4 days ago

Earn 8% and (Potentially) 3x the S&P's Return This Year, but There Is a Catch

FAS uses swaps and derivatives to deliver three times the daily return of the Financial Select Sector Index. When JPMorgan Chase & Co. ( NYSE:JPM), Bank of America Corporation ( NYSE:BAC), and Visa Inc. ( NYSE:V) (the fund's largest holdings) climb 2% in a day, FAS targets a 6% gain. The fund holds $2.5 billion in assets, with 59% in financial stocks and roughly 33% in cash instruments and swaps that create the leverage.
Business
Cryptocurrency
from24/7 Wall St.
2 weeks ago

After Bitcoin Collapsed, Is BITU A Buy or Falling Knife Heading Into 2026?

Leveraged futures-based ETFs can significantly underperform the underlying asset due to contango-driven roll decay and daily-reset volatility decay.
Business
from24/7 Wall St.
3 weeks ago

AMZU Let's You Bet 200% On Amazon But That Doesn't Mean You Should

AMZU offers 200% daily Amazon exposure via derivatives and daily resets, causing volatility decay and compounding losses, unsuitable for long-term or income investors.
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