futures and swaps do not pay dividends, so the dividends on 3x funds are imputed...

		paulpauper on April 15, 2021 \| parent \| context \| favorite \| on: There’s Nothing to Do Except Gamble futures and swaps do not pay dividends, so the dividends on 3x funds are imputed in the nav, adjusted incrementally everyday . I compared a 3x of the DIA (UDOW) to the 1x version and found that the 3x outperform in such a way that the only reason for the discrepancy is 3x dividends.

Ok.

Leveraged ETFs are very dangerous animals, though.

UDOW lost 17% in 2020 while DIA went up 8%.