Leveraged ETF one-day move calculator: the fund move, then a second day
A leveraged fund resets every day. Enter two index days and see what the fund does with them, next to the plain index.
How it works: a daily leveraged fund aims to move by its factor times the index, one day at a time. Fund move = factor × index move. Each day starts from the day before, so day 2 is figured on the day 1 ending value. The page also shows the same money in the plain index, which moves 1 times. The factor is your own number. Fees and tracking gaps are left out.
Two days that cancel on the index do not cancel in the fund
Down 10% and up 10% leaves the plain index at 99 cents on the dollar. A 2x fund falls 20%, then climbs 20% from the lower base. It ends lower still. The fund did what it says each day. The days just do not add up.
The sharper the swings, the wider the gap. Read leveraged ETF and the leveraged fund fell harder for the longer story.
The usual mix-up
A 2x fund is not 2x the index over a month. It is 2x the index each day. Try your own two days above, or run longer stretches in the leveraged ETF decay calculator.
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