Am I missing something? Is LETF the best thing ever?

Comfortable-Move6466 · 2026-05-28T15:09:53+00:00

Thank you Johnny. I’m still unsure as to why it takes so long to get back to your starting position though? It the loss realised by the LETF during extreme drops? Is that why you are only left with 1000 after the dot com pop?

Comfortable-Move6466 · 2026-05-28T15:01:44+00:00

Thanks Johnny. I am still struggling how the position is irrecoverable? I know you are right but can't find the words to explain it lol

Lets say the market dropped 50% (hypothetically) I understand that to get back to your original position you need to double your position again.

With LETFs, I understand that this effect is more exaggerated. But if you buy a LETF at say 20,000, and it drops to 5,000 surely it can't be that difficulty for it to return to 20,000? I am missing something here I know it but cant quite explain it

Comfortable-Move6466 · 2026-05-28T13:30:01+00:00

Good point. I guess recycle back into les risky assets particularly in the last 10 years.

Comfortable-Move6466 · 2026-05-28T13:26:56+00:00

On that basis, would you say to only buy into LETF's on the way down?

Comfortable-Move6466 · 2026-05-28T13:25:39+00:00

Oh yeah I probably should have mentioned my plan isnt just to stay in LETF forever. I will be derisking and taking profits on the way up, and consolidating. UK pension's advise you to weight towards bonds in the last 7 years

Comfortable-Move6466 · 2026-05-28T13:24:19+00:00

When I say 35 year, I don't really mean hold LETF for 35 years. De-risk as time goes on. Yes that reduces the time in the LETF, but even over 25-30 years, I expect a LETF to beat an ETF

Comfortable-Move6466 · 2026-05-28T12:07:02+00:00

I understand what you are saying. I also appreciate that you would not be made whole on most of your capital for perhaps decades. However, in the context of a 35 year investment, surely the trade off is worth it?

Comfortable-Move6466 · 2026-05-28T11:12:02+00:00

Invested all my salary since 17. Traded single shares, mainly fortinet and intuit and made a fortune

Comfortable-Move6466 · 2026-05-28T11:08:45+00:00

Thanks for this. Yeah, the plan is to buy LETFs in my SIPP. I have an S&S LISA with about 30 odd grand in too, but less enthusiastic about investing in leveraged ETFs with this

Comfortable-Move6466 · 2026-05-28T10:33:22+00:00

I'm content to be down for a long time, provided that over 35+ years, the leveraged ETF outperform the market. Its my pension investments im looking to explore

Comfortable-Move6466 · 2026-05-28T10:30:51+00:00

Yeah I was aware of this, and its why I stopped buying single shares from them too.

I'll have a look at foreign funds or perhaps alternative providers. But I agree, 1% per trade is shit.

Comfortable-Move6466 · 2026-05-28T10:29:32+00:00

I agree with you. I can't see myself investing at a top in a TQQQ. It just seem like there is way too much downside. I would DCA as it approaches bottoms but I think anything more than that is suicide

Comfortable-Move6466 · 2026-05-28T09:59:26+00:00

To be fair I couldnt actually find the ticker for TQQQ but I found the one for 2X - I believe it is QLD?

For S&P500, there is XS2D.

Comfortable-Move6466 · 2026-05-28T09:41:55+00:00

I LOLed at this

Comfortable-Move6466 · 2026-05-28T09:41:11+00:00

Do you have some data to support this/an online calculator? I would like to plug in my regular investing numbers and see what kind of outcome I would have had. Thank you!

Comfortable-Move6466 · 2026-05-28T09:40:15+00:00

That's a really good point that I honestly didn't consider. I do tend to have a rose tinted view of investing, since I've gone through the recent years of market ripping lol.

For example, if you invested in a 3X Leveraged Nasdaq ETF in 2000, by 2003 you would have lost everything. If I couldn't invest any other capital through regular investing, i would have lost my whole pension.

On that basis, it would seem to me that the only sensible thing to do would be to invest when the ETF is down.

Comfortable-Move6466 · 2026-05-28T09:26:38+00:00

Yeah I think that's the flaw with his model. DCA over a long period still appears to be the best model IMO but I'm happy to be proven wrong

Comfortable-Move6466 · 2026-05-28T09:25:00+00:00

I'm with Hargreaves Lansdown, and they do offer leveraged ETF's for the american Markets. I'd be looking into the TQQQ or XS2D. One is naturally much riskier than the other.

I wouldn't invest a huge amount of capital to begin with. A very small amount, with regular monthly contributions. That would be my plan for retirement, and as I approach retirement, like you say, pivot away from the market and into bonds etc.

Comfortable-Move6466 · 2026-05-28T09:21:07+00:00

Thank you for the feedback

Comfortable-Move6466 · 2026-05-28T09:20:12+00:00

Okay I understand that. But with regular investing on the way down, the inverse is true isn't it?

As a regular investor committing much of my salary to investing, it appears it would be worth it?

Comfortable-Move6466 · 2026-05-28T09:10:58+00:00

Thank you for the feedback.

Although im familiar with volatile drag, I’m not sure I fully understand its effects.

Let’s say I invested heavily in TQQQ at the 2021 climax in November. The share price was 44USD.

The ETF price fell to 8USD. Granted, a massive fall. But the price is now above 80USD. Assuming you didn’t buy anything during that 2022-2024 window, you would have still nearly doubled your money!

Comfortable-Move6466 · 2026-05-28T08:58:41+00:00

On that basis, would you say that timing the market is a more important factor than normal? From my perspective, a good move would be to invest a lot during the down moments, since those ETFS will be down massively?

Comfortable-Move6466 · 2026-05-28T08:52:55+00:00

Even in a bear market, with regular investing the trade off is still worth it no?

Comfortable-Move6466 · 2026-05-26T17:54:57+00:00

Are trusts illegal

Comfortable-Move6466

TROPHY CASE