$Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ Les...

王富贵儿 : Lost a lot, still falling now, not sure whether to cut losses... I'm so confused...

股神请留步 OP 王富贵儿 : I don't plan to cut it, I'd rather not cut it even for a year.

股海踏浪 股神请留步 OP : Never hold on to this stock for a year, it will definitely hit a new low, 13.8 will be broken without a doubt.

王富贵儿 股海踏浪 : When will this end?

股神请留步 OP 股海踏浪 : Regarding my 47-year-old self, do you think it is advisable to believe that the china stock market can make a comeback in the future?

72782725 股神请留步 OP : This stock has losses.

王富贵儿 72782725 : What kind of loss is it?

YJia 股神请留步 OP : This leveraged etf incurs losses, the longer you hold it, the more you lose... only suitable for short-term trading.

72782725 王富贵儿 : "YINN" is a leveraged etf from ProShares, mainly tracking the FTSE China 50 Index with a three times long position. Its losses mainly come from the following aspects:

1. Expense ratio: Leveraged etfs typically have higher expense ratios, with YINN's expense ratio approximately 0.95%. This means that even if holders do not trade, these expenses will gradually reduce investment returns.
2. Leverage effect losses: Leveraged etfs are adjusted daily, so when held long term, fluctuations can cause investment returns to not fully match the underlying assets, resulting in 'volatility decay'. In times of significant market volatility, the performance of leveraged etfs may not meet expectations, and may even lead to losses.
3. Time decay: Leveraged etfs are not suitable for long-term holdings, especially in sideways or slightly fluctuating markets, as daily leverage adjustments will gradually erode investment returns over time.
4. Tracking error: Structural limitations of leveraged etfs may result in differences between their actual performance and the performance of the underlying index.

These factors could potentially lead to greater losses for investors in YINN when held long term.