Q: Randy, I ran some return numbers on the same two data points you used in your “metals” video.
Notice that DUST didn’t go down just 18% as you mentioned in the video, it went down 35%.
I can’t explain why?

A: Funny you bring that up. After posting the video, I realized that I didn’t add DUST into the comparison between GDX & NUGT over that time period & if I said that DUST dropped 18%, I was referring to 3x the rise in GDX. The reason for the underperformance is due to the decay from the 3x ETF caused by the extreme day to day price swings in GDX and DUST/NUGT. I give a detailed explanation in the FAQ section under the ETF FAQ’s (see the question titled: Is there a disadvantage of holding a leveraged ETF for an extended period of time?)

http://rightsideofthechart.com/frequently-asked-questions/