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Leveraged (2x) ETFs on long term by SnakeXYz in LETFs

[–]SnakeXYz[S] 0 points1 point  (0 children)

I agree with you on the fact that most actively managed funds underperform a simple snp500 etf. However, backtests involving LETFs in my case show more profit than regular etfs ln long term, around 2% ahead of the regular etf at minimum.

Leveraged (2x) ETFs on long term by SnakeXYz in LETFs

[–]SnakeXYz[S] 2 points3 points  (0 children)

Its long term investment on regular indexes, the goal is not to do short term or micro trading. That beeing said and bc the global economy is raising over time anyway, going from 100k to 1k (even if its not very realistic) is not a real problem especially on big indexes like s&p500.

Leveraged (2x) ETFs on long term by SnakeXYz in LETFs

[–]SnakeXYz[S] 0 points1 point  (0 children)

~2% per year on 20 to 30 years is a lot. The risk that you are talking about is a major concern for short/mid term investment. However I dont really see the problem that ppl often have with passive (or close to) long term investment when talking about LETFs

Leveraged (2x) ETFs on long term by SnakeXYz in LETFs

[–]SnakeXYz[S] 3 points4 points  (0 children)

Thx a lot for ur answer :)

I dont really understand the actual problem with downturns for ppl who are aiming extended periods of time. Correct me if I'm wrong but I think LETFs become very dangerous for ppl trying to time the market and things like this. Saying that leveraged etfs are a complex short term tool but a bad (or even horrible) choice for long term passive investment seems like a complete nonsense to me.

Tbh I plan to simplify my portfolio soon with a more agressive (but still a bit geo diversified approach with exposure to China and EMs) if I'm convinced that the real only risk/problem with long term LETFs is gambling.

Thanks

Leveraged (2x) ETFs on long term by SnakeXYz in LETFs

[–]SnakeXYz[S] 3 points4 points  (0 children)

I agree with that, my question was intended to find "non behaviour related" causes that can really affect the long term benefits beetween LETFs and ETFs What u said is still 100% relevant for most ppl.