Timeline for Why an ETF mirrors the underlying index on a day to day basis but not on a long term basis
Current License: CC BY-SA 3.0
5 events
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Feb 6, 2015 at 20:17 | comment | added | JTP - Apologise to Monica♦ | Right. The math of the leveraging makes a long term leverage impossible. | |
Feb 6, 2015 at 19:45 | comment | added | Victor123 | Thanks. So leveraged etf tracks the index on a daily basis but an unleveraged etf tracks the index on a long term basis(as well as daily basis). Ah, the magic of geometric progression | |
Feb 6, 2015 at 19:43 | vote | accept | Victor123 | ||
Feb 6, 2015 at 19:25 | history | edited | JB King | CC BY-SA 3.0 |
added quote and more Math here.
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Feb 6, 2015 at 19:13 | history | answered | JB King | CC BY-SA 3.0 |