Everything You Need To Know About Leveraged ETFs Explained

Рет қаралды 1,550

7 жыл бұрын

The Everything You Need To Know About Leveraged ETFs video will cover;
- Daily rebalancing and example
- Performance and trading fees
- Problems with longer term index tracking
- Volatility drag
- A real world example covering the in-depth details of the product
Leveraged ETFs are one of the few products readily available to retail investors that remains relatively uncovered by mainstream media. A combination of both incompetence and misinformation leads many investors into a scenario where they purchase an LETF, the underlying index increases, and they end up losing money. This video provides a comprehensive introduction to the product and its failings as a longer term investment vehicle. As always, it is best to speak with a registered financial advisor or contact the provider of the LETF for further questions. If you have any questions, comment below and hopefully I can help you better understand LETFs.
For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories.
seekingalpha.com/author/robert...

Пікірлер: 10

@redrum3075 Жыл бұрын

How do u plan an entry? For example i want to get into soxS. I see its near bottom. How long wud u hold it for ?

@Shah8086A Жыл бұрын

Thanks for sharing. I am more confused. Ignoring fees etc., by theory, each day the price change of a 3x ETF will be 3 times of underlying security change on that day. Then, the supplying and demands of ETF units has no impact on the price?

@michaelsaenz380 Жыл бұрын

Correct.

@supraptobayu 2 жыл бұрын

So say im long and i lost 100% from decay or movement, but then the etf go up 200%, i gained 100%?

@Ser4Bia 2 жыл бұрын

not really, if you lose -4% in total, in order to go back to the same value you basicly need gain up to 4.1% to have the same value ( not 4%) which refeering to your question at the end you will not gain 100%, gains would be lower than 100%

@petergreen1869 4 жыл бұрын

You say that they shouldn't be held long term but $TQQQ has risen over 4,000% since it was introduced in 2010 whereas $QQQ has only risen 400% in that period.

@user-sg1qu8io6v 3 жыл бұрын

2009/2010 was the begining of a great US bull market with low volatility. That's great for leveraged ETFs if you're able to predict that but if you bought a 3x Lev SPX in January 2020 your ETF would be an underperformer instead of just buying the Index without leverage. I guess you haven't understood volatility drag.

@petergreen1869 3 жыл бұрын

@@user-sg1qu8io6v given that we are 15 months into a new bull market like we were in summer 2010 there is plenty of time for $TQQQ to seriously outperform in the years to come.

@user-sg1qu8io6v 3 жыл бұрын

@@petergreen1869 15 month are relative, I'd rather be concerned of what's being priced. Price doesn't move on a one by one basis relativ to growth. Watch out and take care ;)