Just had a quick question about NIO 3x Leverage shares. I’m fairly new to this, so I’m just trying to understand how this works. So my basic understanding is it follows its ETF and returns 3x the gain/loss. But I’ve noticed that it doesn’t always follow the same pattern as NIO does. And I don’t mean tiny discrepancies. For example today NIO was up premarket and the ETF was up as well. But just when the US market opened NIO carried upwards before falling but the ETF just dropped around 13% before rising a mere 9%. I understand that the ETF needs to work harder to get back to the previous level and that there are fees and everything. I’m just not sure why that big drop happened when NIO was actually going up?
Any answers would be much appreciated in layman-ish terms.