Lessons From Hedging A Leveraged Inverse ETF

Posted by Seeking Alpha

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Summary

Some investors may be inclined to avoid leveraged inverse ETFs due to their often wild swings and lousy long term returns, but these investments may be worth another look.

The risk of leveraged inverse ETFs can be strictly limited by hedging, and it’s possible to generate decent returns in a hedged leveraged ETF position over several months.

We illustrate this with a recent example, and explain why it’s relevant now.

Revisiting A Hedged Bet Against Brazil

…read more HERE

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