Leveraged ETFs, Leveraged Portfolios

[nabalzbhf]

Yep, it definitely doesn’t behave like 3x SP500 (esp. short term volatility can remove a lot of your returns), there’s details in the quote from:

Stacked (assets allocation) ETFs: Opinions, Taxes?

Those leveraged ETFs are a pretty bad idea (they give you the daily leverage which is ~never what you want, edit: unless you do daily trade and always reset your positions every day). IIRC there’s some new ETF that work over longer period of time, but you need to invest in them at the start of the period of it to make sense. From one of the best financial newsletter there is: The intuition is this. A 3x leveraged ETF is designed to give you three times the daily return of a stock, whenever…