LogFAQs > #969028920

Yeah I thought I read that you shouldn't really hold those very long.

Here's something from investopedia (not sure if that's a great resource):

Leveraged ETFs are typically used by traders who wish to speculate on an index, or to take advantage of the index's short-term momentum. Due to the high-risk, high-cost structure of leveraged ETFs, they are rarely used as long-term investments.

For example, options contracts have expiration dates and are usually traded in the short term. It is difficult to hold long-term investments in leveraged ETFs because the derivatives used to create the leverage are not long-term investments. As a result, traders often hold positions in leveraged ETFs for just a few days or less. If leveraged ETFs are held for long periods, the returns may be quite different from the underlying index.