Buying Oil

Gotcha. Also known as "beta-slippage"

Every leveraged ETF product comes with a level of decay. If you want to limit the decay, the you will need to find lower or no leverage. For example, an ETF with 2x leverage, will have lower decay than 3x times leverage. However, the nature of leverage, is that there will be decay.

If you want to avoid decay, then you would simply by an ETF that tracks the Index without leverage. Some options include:

• HUT - Tracks WTI prices
• CCX - Tracks WCS prices
• XEG - Tracks the TSX energy index - top holdings included SU and CNQ

Neither of these use leverage, and as such will not have the 'decay' effect.

Mat

Hi Steve,

Can you define, "does not decay"? I am reading that as does not lose value, or decline which is an impossibility.

Mat