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SPXL also has an expense ratio over 1%, which will eat away at earnings unless in the best of bull rushes (now).
by bt3 5y ago
SPXL also has an expense ratio over 1%, which will eat away at earnings unless in the best of bull rushes (now).
- chriak8292 5y agoLeveraged EFTs outperform VTI/VOO (in terms of total return) over 30-40 year investment horizons. Period. Now, the risk (potential one-year downside) is not for everyone.
- throwaway98797 5y agoA little bit of leverage as others have commented is fine. The problem happens if there’s 51% drop in 2x levered fund. There’s a reason the fund the article’s OP is in started in 2008 and not 40 years ago.
- tfehring 5y agoThe expense ratios of leveraged ETFs are nothing compared to the volatility drag. There are far cheaper and more effective ways than leveraged ETFs for buy-and-hold investors to obtain leverage, notably LEAPs and index futures. (Disclaimer: Not investing advice, do your own research, etc.)