http://www.etftrends.com/forum/ Keeping a grip on exchange-traded funds (ETFs) en Mon, 13 Feb 2012 12:03:33 +0000 http://www.etftrends.com/forum/topic/if-i-knew-then-what-i-know-now#post-188 Sat, 31 Oct 2009 13:35:48 +0000 roughbert 188@http://www.etftrends.com/forum/ <p>Donato, that makes more sense! </p> http://www.etftrends.com/forum/topic/if-i-knew-then-what-i-know-now#post-182 Wed, 28 Oct 2009 07:15:44 +0000 Donato 182@http://www.etftrends.com/forum/ <p>CORRECTION FOR ABOVE</p> <p>Hey Rough (and others) . . .<br /> I was just reviewing the above post and caught an error that may be confusing. I did not mean UNG; rather, I meant to compare SKF (the ultra short financial) to the ultra long financial UYG. </p> http://www.etftrends.com/forum/topic/if-i-knew-then-what-i-know-now#post-180 Tue, 27 Oct 2009 06:42:36 +0000 Donato 180@http://www.etftrends.com/forum/ <p>Hi Rough . . .<br /> The term "time decay quotient" is just the way my brain see's it. It is what happens when, for example, an equity repeatedly moves up then down by 20%; you will never get back to where you started. Take a more extreme example . . . 50%. If an equity loses 50%, then it must increase by 100% to get back where you started. There has been much written about this on this web site and others. There is probably a better term for it, but the reality is that the value decays over time.</p> <p>Then there is the fund expenses. So, if you want to stack the odds in your favor, short the fund. Think about it . . . if there is a 1% management expense, and you short it, that one percent goes in your pocket! I realize it's an annual expense, but it is the point of the matter.</p> <p>Another way to look at it would be to look at UNG and SKF one year ago and compare it to today. Shorting leveraged funds is the only way to go.</p> <p>Somebody, I think Proshares, recently came out with a study that disputes the time decay theory. But the charts show otherwise. </p> http://www.etftrends.com/forum/topic/if-i-knew-then-what-i-know-now#post-177 Sun, 25 Oct 2009 16:28:41 +0000 roughbert 177@http://www.etftrends.com/forum/ <p>Donato, Yahoo search says:</p> <p>We did not find results for: "time decay quotient". Try the suggestions below or type a new query above.</p> <p>Please can you explain what you are referring to? A link to an authorative source would be helpful too.</p> <p>Thanks! </p> http://www.etftrends.com/forum/topic/if-i-knew-then-what-i-know-now#post-174 Fri, 23 Oct 2009 07:14:31 +0000 Donato 174@http://www.etftrends.com/forum/ <p>I wish I had fully understood the "time decay quotient" of the leveraged ETF's. For example, to stack the odds in your favor, you have to short them. So that means if you want to go long, you short the ultra shorts; if you want to short the market, you short the ultra longs. </p> http://www.etftrends.com/forum/topic/if-i-knew-then-what-i-know-now#post-173 Thu, 22 Oct 2009 13:06:31 +0000 Tom 173@http://www.etftrends.com/forum/ <p>We all had to start somewhere with our ETF investing. What have you learned through the months or years since you started investing in ETFs that you wish you had known from the get-go? I'm really interested to hear your responses! </p>