With the price of gold in free fall, it’s not surprising to see the gold miner stocks in steep downtrends.  But if you own an ETF that gives you 3x the daily performance of the gold miner group, you’ve lost 42% over the last 5 trading days!

Below is a table showing the performance of hedged and leveraged ETFs that are included in our daily ETF Trends report available to Bespoke Premium members.  The list is sorted from worst to best in terms of YTD performance.  As shown, the NUGT 3x long gold miners ETF is now down 65.68% YTD and its 59% below its 50-day moving average.

The only thing doing worse than gold miners is the VIX — the 2x long VIX ETFs are down 78.5% YTD!

The chart below shows you once again why you should never plan on holding leveraged ETFs long term (if you want to hold them at all).  Take a look at the performance of the 3x long gold miners ETF over the last 5 years as well as in 2015 alone.

While the NUGT ETF is on a path to zero, the 3x short gold miners ETF (DUST) has rallied 51% over the last 5 trading days!  While that’s a nice move, the long-term chart of DUST below shows you that it has been trending lower since 2013 as well.  Just a few weeks ago it was trading down near $10/share — about the same price that NUGT was trading at the time.

Leveraged ETFs = swim at your own risk, and don’t say you were never warned.

BMP1

Print Friendly, PDF & Email