Today all triple gold stock ETF’s will be destroyed.
I am talking about ETF’s such as DUST, NUGT, JNUG, and JDST.
No this is not an April Fool’s day joke this is reality.
For years I have warned against buying these ETF’s for a huge reason. Even though the big moves up and down attracted people into trying to play them all of these ETF’s eroded over time simply because of the way they are designed.
They simply destroyed accounts.
And last month they malfunctioned and diverged away from their actual NAV to demolish those holding them at the time.
As a result of this malfunction the Direxion fund family that operates them is changing them to all be 2X ETF’s as of today April 1, 2020.
No this does not mean they are now safe as they STILL will all have decay factors. They won’t be as bad as they were as when these were 3X ETF’s, but they still will be bad. And the risk of another malfunction in these ETF’s in another bout of market volatility will remain.
The reality is you are better off buying small cap mining stocks that will move up as much people trying to buy these ETF’s aim for and do not have the erosion factors in these ETF’s.
All triple ETF’s are inherently account destroyers and must be avoided at all costs unless you like to play the markets as one would play a slot machine.
Today on April 1, 2020 – these triple ETF’s are destroyed.