Is Volatility Decay a ‘Myth' With Short & Leveraged ETFs?

Impact · against what's priced in

The research claiming 'volatility decay' is a myth provides a theoretical tailwind for issuers of leveraged ETFs by challenging a primary criticism of the product class. However, as the price of these financial services is driven by actual AUM and trading volumes rather than academic definitions of decay, the immediate impact is marginal.

Scored by the NIS engine · methodology.

Is Volatility Decay a ‘Myth' With Short & Leveraged ETFs?

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volatility decay

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