Leveraged ETF returns smoothed by shorter holding periods

Research conducted by Constance University of Applied Sciences, on behalf of db x-trackers, shows returns on leveraged ETFs were not as volatile as expected, even though the leverage function implied returns would fluctuate far more. The university's professor of business administration Leo Schubert, who headed the study, says: "The significantly shorter holding period of ETFs with higher leverage seems to be at the bottom of this." The analysis looked at the use of short - or inverse - ETFs and leveraged ETFs in Germany, Europe's largest market. Results reveal holding periods are ...