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/biz/ - Business & Finance

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52821831 No.52821831 [Reply] [Original]

Is holding 3x leveraged S&P trackers long term a retarded idea?

>> No.52821847
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52821847

>>52821831
yes, holding any leverage etf is a retarded idea because of time decay. since it tracks percentage changes you will lose money to the math hole

>> No.52821850

>>52821831

are you talking about leveraged ETFs?

this is a known topic: look up leveraged etf decay

>> No.52821858

>>52821847
holding for the long term* they are meant for trading or hedging

>> No.52821859

>>52821847
>>52821850

I have heard this, but if I look over the returns for the past few years, a leveraged 3x tracker is up like 300%, while the index is up like 60%, so it is still better to hold long term

As long as I don't purchase right before a crash

>> No.52821879
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52821879

>>52821859
which one

>> No.52821900

>>52821879

I see the issues to be honest, it's only when you measure from particular points you can find good profit, but others its the same or even less.

I guess if you were to invest at the bottom of a bull market then yeah, leveraged trackers are great. But a lot of the time the returns are meh

God damnit I just want to invest long term using leverage, but the only real option is to remortgage a property, which I don't have

>> No.52822156

>>52821900
have you ever bought a stock or crypto without leverage? imo you should trade and invest for years before using leverage with any serious amount of money, unless you have some kind of edge. maybe if you are really good at spot trading then start using leverage.

>> No.52822255

Ew

>> No.52823044

Leveraged ETF's are only better if u hold and buy every so often

>> No.52823621

buy 3x a normal S&P etf on margin instead of a 3x leveraged etf, much cheaper long term

>> No.52825314

>>52821831
only in a bull market. as long as things trend up, yes, you'll do well. if things are trading flat or downwards you'll get fucked long term.

>> No.52825417

So switch my kid's account from 100% UPRO to 100% SPY? It's gonna be there for 17 more years

>> No.52825447
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52825447

you can run a very basic strategy that far outperforms the market with 3x SPY ETF
ignore the midwits talking about leverage decay, they will simply not make it.