I'm just wondering if anyone has found any use for those leveraged proshares/rydex ETFs or funds? I know most people use them for short term speculative and hedging plays, but I had a thought that I wanted to bounce off you guys. I am sure this isn't a new strategy, but what about using the S&P500 2x leveraged long fund or etf and then only buying half as much? Then you could invest the remaining money in the money market, or something else, and not tie up as much money.
I realize it is an expensive fund, but you could buy a bit over 1/2 to make up for expenses.
Does it track very closely to make this a doable strategy? Or is the tracking error too high, and there is something else I am not considering?
I realize it is an expensive fund, but you could buy a bit over 1/2 to make up for expenses.
Does it track very closely to make this a doable strategy? Or is the tracking error too high, and there is something else I am not considering?