inverse etf decay

inverse etf's are technically made for daily positions. they are great tools if used for that amount of time (and at the right time). however, inverse etf's have very high fees which cause the underlying instrument to lose value over time. they also don't track accurately from day to day. so if the market isn't going down in a straight line you most likely will lose money.

to be fair this can happen with options as well and it is called theta decay. however, with options the Greek values will let you know so there will be no mistaking it. with an etf it will be buried within hundreds of pages of a "prospectus" which most people won't read