A problem with 2X ETFs, in particular Horizons Beta Pro, is that they are not backed by assets, they are just a promise to pay, and that promise is only as good as the company issuing it. Look at a chart for Jovian (JOV.TO), the parent company for Horizons Beta Pro. It's gone from a high of $1 to a recent low of $0.17, and all of its funds declined seriously relative to the index they were supposed to track. I like some of their funds but I won't risk more than a small fraction of my money there.
Really, in the long run, how can any company survive offering 2X long ETFs? Stocks always go up in the long run, and this offers a way to beat the returns of the market by 2. If it really worked, everybody would invest their money there - pension plans, banks, Warren Buffet, etc.
2X ETFs are a recent invention which I don't believe is going to last. But I'll try to take advantage of it while I can.
Fun-da-Mental |
