To demonstrate that these leveraged funds are likely best utilized as hedges that should be rebalanced frequently and/or short term trading devices, the relative performance numbers of these funds over time displays some disconnect to “spot” as would be expected due to the daily reset of the leverage component within the funds themselves and the effects of compounding. [How Volatile Markets Impact Leveraged ETFs]
GLD is up 13.93% year to date while UGL has returned 23.51% and DGP is up 22.14%.
PowerShares DB Gold Double Long ETN
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