There is long term historical data available even though the index has only been around for a few months.
Go to "ISE ETF Ventures High Income Index" and click on historical. They have extrapolated the data. What you will see is: if you invested $100 in the index on 12/31/03 by Nov 20 '08 your investment would have been worth $47. A 50+% loss.
What that tells us is that $100 invested here(if it existed) at 2x, even reinvesting 100% of the dividends, would have had a share price of about $0 on that date.
Not suggesting that history will repeat but it is something to consider.
All the 2x and 3x funds I've looked at tend to underperform their index over time and the further you go out in time the greater the underperformance.
Not a bash I'm still looking at this.
YYY(the unleveraged index) looks better to me even with just a 10% yield. The index itself already has about 30% leverage.
Just my worthless opinion. No position.
What if it was around and you bought it in 2008? You'd be rich, while enjoying a 15% dividend. Also most of the CEFs in CELF continued to pay their dividends through 2008 and beyond with no cuts. If 2008 repeats, we're all in trouble I guess.
Low $23.76, High $28.37 since inception. A majority of the Chart indicators tell me it's going lower. The market correction/ex-dividend may cause a dip. I may start buying in tranches @ $24.40 or lower.
last post on this. Since I was wanting real, actual dividend income outside an IRA I think using the 30 CEF's in the index as a starting point, I'll pick the 5 best unleveraged and spread my investment between them. I've owned many in the past and found that the majority of their dividends are untaxed return of capital. The yield will be about 10% nearly tax free. So...