A new ETF is being proposed that plans to short both a 2x leveraged long ETF and a 2x leveraged short ETF on MicroStrategy's stock. The ETF prospectus claims it will profit from "volatility drag" ...
Leveraged ETFs suffer from volatility drag, causing them to underperform their benchmarks, which can be exploited by shorting leveraged ETFs while buying the underlying asset. Backtesting since July ...