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Leveraged ETF?

889 Views | 5 Replies | Last: 2 yr ago by jh0400
AColunga07
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AG
A buddy recommended to invest a small amount (less than 100k) in some leveraged ETFs. Do any of y'all do this? It seems like a cheap way to double down on your investment strategy. Sure, I'll take twice the hit when times are bad, but I'll also get twice the gain when it's good. Is it that simple?

Consider a leveraged S&P500 ETF for the feedback.
Dr. Horrible
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I can say I regret not being in spxl more since I started this game.
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AColunga07
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AG
I regret not being in it at all.
frankm01
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FNGU is a 3X leveraged ETF for FANG+ stocks. FNGD is the inverse leveraged ETF. Both very volatile and per their
prospectus, are designed to be held for short periods of time. Although I'm not in either right now, I had done well with FNGU in 2020.
$30,000 Millionaire
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AG
Great idea in March 2020, maybe less of a great idea once the fed tapers. Protect your gains.
You don’t trade for money, you trade for freedom.
jh0400
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https://www.investopedia.com/articles/financial-advisors/082515/why-leveraged-etfs-are-not-longterm-bet.asp

The long-term intrinsic value of a leveraged ETF is $0 due to the effect of decay. They're fine for short-term holds (intra-day to a few days) if you have a specific thesis. You can achieve similar returns by using SPY and adding leverage with options.
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