Of the 74 leveraged funds that take short positions, 26 were introduced in the past year. Thirty of the remaining 48 funds have generated returns in the past year. But the one-year average for the group has shrunk to 9.1%. Industrial stocks have surged in the past month, causing the ProShares UltraShort Industrials ( SIJ) to lose 26%. The fund's one-year return has withered to 39% from 188% two months ago.
Unlike mutual funds, which are meant to be held for years, leveraged ETFs are designed for short-term trading.