/biz/ - Business & Finance

>>51295605
Volatility "decay" is the same concept, mislabeling math that can lead to both permanent loss and permanent gain.
Instead of some FIRE blog repeating debunked concepts here is someone covering the actual math, who isn't afraid to admit that 1.0 is just another leverage ratio.

http://www.ddnum.com/articles/leveragedETFs.php

Anyone who can't understand this is free to look at pic related. The costs of the swaps were wiped out by something, what do you think that was? 4% volatility gain. 4% leverage gain. 4% chop gain. Whatever you want to call it, try getting a moderate 300% portfolio leverage for free, go ahead and show me where else you can achieve that. Bunch of youtube and reddit pseuds.