You've got a beautiful, easy-to-digest manner and method when describing these instruments - please stay awesome!

U keep it simple and straight to the point no hype

I Just bought your book on Amazon, Can't wait to look forward to your work.

Thank you for these videos Patrick. I have really enjoyed them. Every article on leveraged ETFs always points out volatility drag... if the underlying goes up one day and down the next the 3x leveraged fund will do worse than 3x. What they usually don’t point out though is that on consecutive up days the 3x leveraged ETF should outperform the underlying by greater than 3x. If you Monte Carlo sim a leveraged fund vs its underlying (ignoring fees and assuming normal returns) you’re mean return of the leveraged fund after any time period actually is greater than the underlying’s mean return by the leverage factor (e.g. a 3x fund mean return will be 3x the underlying). The median return however will not be. Greater volatility in the underlying or greater leverage will reduce the median return and increase the right skewness of returns in the leveraged fund.

This is the first time I understand most comprehensively about leveraged structure investment products..decades ago, some company in my country sell these kinds of products, a leveraged investment tracking forex..they all go bust

Thanks to P.B's break down concerning a plethora of financial instruments and how they work, this trucker wearing hat guy with a $65,000 bass boat has just upgraded to a double wide. Keep up the invaluable work you do for us!

Patrick you tell an important story. Most of these leveraged ETN's have the built in right to close with no warning leading to considerable losses to the consumer.

this is why the chart for leveraged products generally go from the upper left to the lower right very consistently. The funny thing is, both the 3x long and 3x short products have almost identical charts.

Don't mind me, I'm just binge watching all of Patrick's videos to learn more about finance

Thankyou for taking the time and effort to create your channel and your content, Patrick. It has been very informative.

Well done. No BS description. Straight forward and honest.

Excellent explanation on ETN's , by far the best on youtube I've seen!

MORL and MRRL went under during the pandemic but others survived. the returns were fantastic.

King Patrick dropping PURE KNOWLEDGE ‼️ 🔥🔥🔥🙌👑👑

Hey, awesome content! It would be great if you could add an example payout structure of those products in the videos. For example, how does an ETN internally work in terms of cash flows. Thank you for your great work!

First mistake - falling behind in retirement planning. Second mistake - investing almost 100% in one asset (not even asset class). Third mistake - choosing an investment with an 18% dividend yield.....quite risky for speculating, insanely risky for retirement. So much of this could have been avoided with education.

Another great video !! I like the tie !

Hi Patrick, I really liked your documentary and narration on Charls Ponzi. Currently, I'm working towards and passionate about getting masters in Financial Mathematics. I don't know much about your background but do you think you could provide us a content about how physics and pricing on financial instrument are related.

Barclays brought me here...4/29/2022

Thanks! Great content as always! 💯

Could you do a video on exchange traded debt notes/debentures?

Have a great day as well

Thanks. Just went all in on SOXL

Thank you for your video. You're quite correct that a 3x leveraged ETF tracking the S&P500 would not give you 3x the long-term return of the index but rather it would triple the daily return....but that's still quite a lot. If you look at the long term chart of the SPXL (3X S&P500) a share bought at about $3 in 2009 would be worth $52 today (even after the huge drops in March). I did open a position in April and closed it last week and it's paid off handsomely (+80%). Why did I sell? I was concerned about the Robinhood news and, sure enough, later on TSLA went down quite a bit (and then again, it may have just been luck!). I sense a bit of a downward pressure in markets now, so I am still dwelling on whether to use a leveraged short ETF of the S&P500. And yes, I am a retail investor and I completely understand that these are highly levered products based on complex swaps conducted on a daily basis (I have an academic background in economics and finance, full disclosure). And yes, such products do require a good understanding of them and there are certainly not apt for betting the whole farm on them. But let's suppose for the sake of argument that you really wanted to do the dumb thing and allocate a sizeable chunk of your portfolio into 3X S&P500 product like that (with the daily swap stop triggered at a drop of 12% or higher). What would you have to do to mitigate risks? SImply keep another good chunk (a third to a half of the 3X leveraged position) entirely in cash and buy opportunistically a leveraged 3X inverse ETF that triples the S&P500 drops in positive for you. And no, chances are it won't completely offset the losses but it would certainly make them much more bearable. And finally I am sick and tired of paternalism on part of politicians and journalists and calls to ban my access to products that I as a retail investor can learn perfectly well how to use! As if the UCITS bulls**t here in Europe were not enough of a limitation already...Just because some people want to bet the farm on it and don't understand what they're doing doesn't mean retail investors who can understand it should be deprived of access to such things.

hes could've just popped his savings into a tech etf during the bottom of the dip, and 3x his money!

Hey Patrick! Love the content. I remember you from the Lion's Den. Are you still in touch with Ewan?

Currently dealing with this in the "ETF" KOLD.

If the S&P 500 or any other security goes down 10% one day and then goes up 10% one would lose money even from the non-levereged instrument. Suppose you start with $1,000 at the end of the first day you are going to have $900. At the end of the second day you will have $990 ( $900 + 10%). So not a good comparison. 😁 For the index to recover completely on the second day (to $1,000) it will need to go up 11.11(1)% (($1,000 / $900 - 1) x 100%) 😁

Great lecture. We'll done.

Very well. Explained

Very interesting and well done.

You remind me of a hitman I don't know why.. anyways love your videos. Always end your videos knowing a lot more

Brilliant video.

Wait is this bull and bear certificates? I would like a video regarding how to short the stock market and what types of tools is good for that.

You sartorial game matches your market knowledge

So a LevETN is a great note to put on one's play-money account?

Thanks Patrick . I was thinking about a short term Options play via a straddle if the ETN is Optionable . But is unsure about the daily rebalancing . Be glad to hear your thoughts . Or should I just stay away from them .👌

i am in profits on usoi, slvo and smhb all in profits..but plan on selling 6-12 months..whenever i feel a top has been reached

Wow great content ... thx

Good day👍

yeah i could never understand why MORL even existed. Until i looked at the yield. Then I really really didn't understand how it could exist.

i dont understand. Are leverages ETFs also bad, like 3x exposure tech etfs long, SOXL for example. or is the fact that its a traded note?

I have a question what usually happens to a company in time of war especially when the company is in the defeated side?

Really great video Mr Boyle. (IMHO) I think we also put too little responsibility on Retail Investors, there should be more emphasis on Retail Investors to also do a bit more research for themselves and not just always point to the "big bad institution". This principle of blaming institutions and having people not take responsibility for themselves is going to eventually hurt our societies and at some point trample on individual rights. The responsibility for the individual to empower and equip themselves is very important to promote along side making sure institutions are properly regulated and monitored against taking advantage of people. It has to go both ways.

Is bnku as risky as these other ETNs? Seems to be tracking a sector less nebulous than commodities.

Can you make a video on why inflation is muted despite QE and capital injection into the markets?

Nice suit

I made money on SVXY back in the day. Wasn't in for the big crash, though, and now Vanguard won't let me buy it 😂

I know I'm very late to this video, but it raised quite a few questions in my mind. Is the ETN format inherently "worse" than ETFs ? Or is it just that naive investors get lured into thinking that notes == bonds == safe ? Do you think all forms of leverage are equally dangerous or just the daily-resetting kind ? Do you think there's ever a place for leverage in a retail portfolio, as long as it's used sensibly ? @9:08 you mention that "leveraged ETFs lose out from compounding" but I think that's only part of the picture. They can lose out in choppy markets, yes, but in a trending market the daily resetting works in your favour because each day you start from a higher point. Also @14:00 - did XIV go "below" zero (ie negative) or did it just go to zero ? I assume it's the latter. Worth clarifying that even a long levered ETF can go to zero. Eg if I hold 3X FTSE100 and the FTSE falls 35%, I've lost everything. Anyone still reading should check out Corey Hoffstein's writing on "return stacking", he argues for the careful use of leverage to get a more efficient Sharpe ratio while not sacrificing equity exposure.

ETF/ETN's are best left for active traders IMO.

In the EU you cant even buy the SPY etf. Which is a little excessive protection.

CEFs would’ve been a better option for him

Is it possible to short this kind of leveraged ETN or ETFs?

Man that's a brutal loss. Wondering after entering wasn't there some eay to escape. I mean a 50% loss is better than 100. What could he of done to exit!

So, ETNs are the bank playing bookkeeper

Dad one question.. Why not just buy Call options with 1 year expire and a put also 1 year till expiry. Wont that be 100% ride to the moon? Or use online options uhhh price loss calculator and sell the options mid way and reposition if they never turn a profit? Or maybe f strategy and spy calls end of week my school tuition? lmk papa BoYlE

Sir what is the name of your book

Why on earth would you put that much of your money in one thing? When you hear about people loosing everything in the stock market it’s alway because they were into concentrated positions and the word leverage is usually involved.

Ah, XIV, good times.

I feel bad for investors who lose all their money, or anyone who does so, BUT does no ever follow the old maxim "Don't have ALL your eggs in the same basket?......Doesn't anyone diversify anymore??

March 2020, TVIX went from $25 to $1000. I am sure Ackerman who shorted the market took advantage. Some people are able to move the market the way they want. We retail investors have no power. We can only hold and pray assets that do not decay over time.

2006? Uh-oh Barclays? _Uh-oh_ Credit Suisse? _Oh _*_no_*

I think EVERY company that created and sold leveraged ETN’s should be forcibly closed and ALL the proceeds should go to investors of the ETN’s. Also every high level executive should be issued the death penalty. And this is coming from someone who did not invest in any of this garbage.

I am selling my ETN's

There is probably a grandpa somewhere who had lost all his savings on a penny stock that went to 0, as well. That does not imply we should have an irrational fear of investing in the stock market in general. Cherry picking some sob story is dishonest. TQQQ has had >7500% return over the last ten years (it went from ~2 to ~150). TQQQ has nearly doubled since the making of this video. Why is nobody mentioning the leveraged ETFs or ETNs that aren't junk. Another example of an ETN that probably isn't going to 0 is SDYL which also pays a decent dividend. Recommending TQQQ as a buy and hold right now is probably an awful idea but these money printing machines should be on everyone's list for the next big market correction.

These ETFs, ETNs, ETPs, ESNs, and dark pools all seems risky as fuck.. CDFs hold the same risk as bear stocks. Sounds like some big bank debt cerfuffle.

Love it! I'm 25 and have my entire Roth IRA (over $45K) invested in 3x leveraged ETFs TQQQ and TMF. Results on my channel.

they should probably just not exist.

I dont understand people who "invest" in ETN !!! For me 3 things : index ETF (SPY,XIU,QQQ), Bonds and ETF gold. Keep it simple.