I've invested a bit in a reverse ETF this week. Doing some reading and sources suggest that because these ETFs are rebalanced daily, they erode in value and are really for short term investing only (ie a day).
If I believe the market will continue falling all week, what would be the risks in holding the ETF until Friday? It's a 2x bear fund. I understand in a general way that that gains may not actually be 2x inverse to any market drop. Other than that risk, what else would you consider important to know if thinking of holding this fund for a few days?
Thanks!