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Leveraged and inverse ETFs (hereafter leveraged ETFs) have received much press coverage of late due to issues with their performance. Managers and the media have focused investors' attention on the impact of compounding, when the funds are held for more than one day. The aim of this paper is to lay out a framework for assessing the performance of leveraged ETFs.

The authors propose a simple way to disentangle the effect of compounding and that of the management of the fund and the trading premiums/discounts, all of which affect investors' bottom line. The former is influenced by the effectiveness and the costs of the manager's (synthetic) replication strategy and the use of leverage. The latter reflects liquidity and the efficiency of the market.

The paper finds that tracking errors were not caused by the effects of compounding alone. Depending on the fund, the impact of management factors can outweigh the impact of compounding, and substantial premiums/discounts caused by reduced liquidity during the financial crisis further distorted performance.

The authors propose a framework for practitioners to evaluate the performance of leveraged ETFs. This framework highlights a very topical issue, that of the impact of synthetic replication, which all leveraged ETFs use. Financial regulators such as the SEC and the Financial Stability Board have all taken issue with synthetically replicated ETFs. In leveraged ETFs, this issue is masked by the effects of compounding. The framework the authors propose allows investors to disentangle the two effects.

The purpose of this paper is to consider people's ways of coping with increasing flooding in a Philippine rural community.

The paper relies on extensive field work conducted between July and August 2006. It cross‐checks data from different sources including interviews with key informants, a questionnaire‐based survey, informal group discussions, passive and stationary observations and photographic documentation. Field work was completed by the collection of secondary written documents.

The paper emphasizes that the capacity of flood‐affected people to cope with increasing hazards is rooted in their ability to adjust their everyday lifestyles. Flood‐affected people seldom rely on extraordinary measures to face nature's extremes. People's ability to adjust their daily life is deeply dependent on the strength of their livelihoods and social network. The kind and variety of livelihoods turned out to be a critical factor in securing the financial means to purchase enough food to satisfy daily needs. Social networking was also found to be critical in providing alternative support in times of crisis.

This paper fosters the use of community‐based disaster risk reduction programmes coupled with development objectives to enhance people's capacity to cope with natural hazards. It further underlines the need to empower people to make them less vulnerable in the face of natural hazards through fair access to resources.

This article contributes to the understanding of how people cope with natural hazards in the Philippines and provides an array of possible remedial strategies for community‐based disaster risk reduction.