Todays video is based on Mondays Wall Street Journal article on Leveraged ETN's called “Bankrupt in just two weeks, Individual investors get burned by collapse of complex securities". by Akane Otani. We will learn about levered ETN’s and the investors who have seen their retirement savings evaporate because of them. We will learn the difference between an ETF and an ETN. Stay tuned to the end where I will explain why a two times leveraged product doesn’t actually give you twice the long term return of the index it is tracking, just twice the one day return. We will also learn about inverse ETN's like the XIV the short volatility ETN that blew up in 2018.
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