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Tuesday
Mar272012

Triple Leveraged Long and Short ETFs

With the major stock market indices here in the US up double digits already year to date, traders that own the triple long ETFs have done extremely well, while owners of the triple shorts have gotten crushed.

Below are tables of the triple long and triple short equity ETFs.  As shown, the triple long technology (TYH) and triple long Nasdaq 100 (TQQQ) ETFs are already up more than 80% in 2012.  Triple long ETFs for semiconductors (SOXL), financials (FAS), Russia (RUSL) and retail (RETL) are all up more than 50%.  Triple short ETFs are pretty much down 30% or more across the board.

Owning these triple ETFs is definitely risky business, and it's always important to remember that they track the daily moves of the underlying indices.  Over longer periods of time, performance can vary widely from their benchmarks, especially in a volatile market.  If you've been bullish so far this year, though, and you picked up some of the triple longs, you've done very well.