If you’re doing daily rebalancing, it’s going to be a bit of work for a buy/hold portfolio, it can be automated but at this point why not use something like futures? (that you also need to rollover and keep cash aside)
(and I think you’d also need to have your cash invested at the risk free rate, so not just sitting as cash at IB)
edit: SPYQ is probably a better idea if done with ETFs, it rebalances quarterly (but TER is fairly high)
This route can make more sense. But what happens if you dont rebalance (and thus selling on the way down, just like the daily levered funds do) to match your desired leverage is, that the leverage goes higher and higher the more it goes into drawdown. This then increases your risk and you are betting on mean reversion there. Which you can do (it worked in the past), but you need to be aware of that and most people aren’t. You are actively letting the leverage ratio drift higher.
Also another problem with a margin loan is the high financing cost (benchmark +1.5%), and if you deduct this from taxes, you’ll have a lower DA-1 return, as that offsets it (super weird ruling on that in my opinion).
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