I need some help wrapping my mind around how DXO, which is an ETN that is leveraged 2x price of crude, has fallen from a high of 29.65 to 2.22. This is a 92% decrease, yet crude has fallen ~72% from its highs, back when DXO was 29.65.

Further, lets assume oil goes from $42 back to $150. This is a

((150-42)/(42))X100= 257% increase.

However, a 257% increase from DXO's current $2.22 price would bring it to $13.36 (with 2x leverage). Here's my math for that.

((x-2.22)/(2.22)) = 2.57*2

x - 2.22 = 11.14

x = $13.36

As you can see, even with oil at its high of 150, the DXO would not be at its high of $29.36.

Can someone illuminate how this is possible, whether or not my math is wrong, and if my math is not wrong, what this means about ETFs?

Due to ETFs tracking percentage changes and not price movements, does this mean that volatility inevitably results in price depreciation for ETFs? Thus, wouldn't it be prudent to short ETFs as soon as they come on the market?

Further, lets assume oil goes from $42 back to $150. This is a

((150-42)/(42))X100= 257% increase.

However, a 257% increase from DXO's current $2.22 price would bring it to $13.36 (with 2x leverage). Here's my math for that.

((x-2.22)/(2.22)) = 2.57*2

x - 2.22 = 11.14

x = $13.36

As you can see, even with oil at its high of 150, the DXO would not be at its high of $29.36.

Can someone illuminate how this is possible, whether or not my math is wrong, and if my math is not wrong, what this means about ETFs?

Due to ETFs tracking percentage changes and not price movements, does this mean that volatility inevitably results in price depreciation for ETFs? Thus, wouldn't it be prudent to short ETFs as soon as they come on the market?