Matt Levine’s Money Stuff: Triple ETFs Triple Your Fun

Leveraged single-stock ETF

This is just a neat trick of arithmetic:

The Europe-listed $11 million GraniteShares 3x Long MicroStrategy Daily ETP (LMI3) is the ultimate example. While MicroStrategy itself is higher by more than 100% this year, LMI3 has dropped nearly 82% — despite offering leveraged long exposure to the stock. That dynamic holds on a one-, three- and six-month basis as well.

LMI3 is an exchange-traded product that offers investors three times the daily return of MicroStrategy Inc.’s stock. If MicroStrategy goes up 3% on Monday, LMI3 goes up 9%. If MicroStrategy goes down 5% on Tuesday, LMI goes ...