More Leveraged ETF Torture: 2X ETFs Become 3X ETFs

As if we needed more leverage!

Direxxion is changing its 2X ETFs into... 3X.

"Currently, the investment objective of each of the funds with “Bull” in its name is to seek daily investment results, before fees and expenses, of 200% of the fund’s target index. The investment objective of each of the funds with “Bear” in its name is to seek daily investment results, before fees and expenses, of -200% of the fund’s target index.
Effective December 1, 2011, each fund’s investment objective will be changed to seek daily investment results, before fees and expenses, of 300% or -300% of the performance of its specific target index".

The fact that 300% actually means 4X is too complicated math of course.

The higher the X, the faster the ETF's value goes to zero.

At least it's tough to do 4X though, as the fund risks having to drop it's value to zero in a single day if the market moves 25%.