Do you prefer leveraged ETFs for shorts, or shorting the stock itself?

Mathematically I think the leveraged ETF is better because of the compounding effect, but it also depends on the liquidity of the ETF and whether it is really low-priced. I use both. If I like shorting the stock, I short the stock. If I like the leveraged ETF more, I go for the leveraged ETF.

Source: EP108 | 23 Oct 2026