10 Worst Leveraged ETFs of 2013

As is the case with so many things in life, leveraged cuts both ways and that is particularly true in financial markets.

Of course, financial markets leverage also means  a conversation about leveraged exchange traded funds, an exciting but risky corner of the broader ETF universe.

These products are best suited for active, risk-tolerant traders, something that both ProShares and Direxion, the two largest issuers of leveraged of inverse and leveraged ETFs, do a good job of explaining to investors on their web sites.

As we noted earlier this week, although leveraged ETFs are not buy-and-hold instruments, it is hard to ignore the year-to-date returns  offered by 2013’s 10 best leveraged ETFs. All of them have at least doubled.  Some could be sitting on triples by the end of the year. [Top 10 Leveraged ETFs of 2013]

But as the following list of the 2013’s 10 worst leveraged ETFs shows, holding the wrong leveraged funds for extended time frames can be hazardous to a portfolio’s health. All performances are as of Dec. 4. Let’s get started with the…