Why Your Spicy MSTR ETF Is Sucking

Path Dependency Kills

Ahhh… Levered pairs on high-volatility underlyings. The gift that keeps on giving. Here’s the quote:

“Investors shouldn’t be surprised that their performance over the last week in daily-reset levered hot-sauce ETFs hasn’t matched their expectations. No other product presents the opportunity to be right and still loose money like a levered ETF. Longer term holders of either the long or short (Micro)Strategy ETFs have paradoxically lost on both sides, and even short term holders are likely getting half the gains from their inverse bets than they expect. Meanwhile, Defiance and REX Shares are booking $25 million a year in fees on these ETFs.”
- Dave Nadig, Independent ETF Expert.

Details and charts below the break