Secretary of State William Galvin Launches Investigation Into Leveraged ETF’s (FAZ, FAS, BGU, BGZ)

Secretary of State William Galvin of Massachusetts’s has launched a formal review of the sales practices of leveraged exchange-traded funds (ETF’s) which are designed to magnify the market’s daily performance.  Galvin says he’s concerned about the returns and costs of the increasingly popular financial products.

Quantifying 3X Leverage ETF Performance vs. Target Index (FAS, FAZ, BGU, BGZ, ERX, ERY)

“Direxion has issued its semi-annual report for its triple leverage ETF holders and there are some interesting revelations here.  While there are many others covered, we wanted to demonstrate some of the differences among the Direxion Daily Financial Bull 3X Shares (NYSE: FAS), Direxion Daily Financial Bear 3X Shares (NYSE: FAZ),