3x Leveraged ETFs: Why You SHOULD Own Them Long-Term (S&P 500 Triple Leveraged ETF) скачать в хорошем качестве

3x Leveraged ETFs: Why You SHOULD Own Them Long-Term (S&P 500 Triple Leveraged ETF)

Triple Leveraged ETFs, These badbois have the potential to turn an investment of 100$ into more than 120.000$ on a 40 year-timeframe. That, while normal Index fund investing in the S&P 500 would’ve turned that 100$ into only a little more than 4000$ on that same timeframe. So, what is a leveraged ETF anyways? An ETF is basically a fund which reflects an index, sector, commodity or any other asset! A leveraged ETF is then VERY simple to understand. Say the S&P 500 goes up 1% in a given day. A two times leveraged ETF would then go up twice that, so 2%! And a triple leveraged ETF would go up 3 times as much as the normal one, so 3%. Remember, a leveraged ETF is DAILY leveraged: meaning, it is reset each and every day to best reflect the required return! However, the potential of leveraged ETFs is still second to none! If you had invested 100$ into the normal S&P 500 in 1940, it would turn into a whopping 36811$ just 81 years later…If you put that same 100$ into a hypothetical triple leveraged ETF, you wouldn't have 36811$ today... no, you would have about 10 million dollars today. 100$ to 10 million over the span of one life time, truly insane. Although, there are risks... I think the following 3 long-term risks are the biggest ones: Volatility Drag 33.3% in one day Dividends (Note, I do not see the leverage as an inherent risk) We CAN partly mitigate volatility drag on the long term. How? Dollar Cost Averaging baby! DCA'ing is where you build up a position, slowly over time, adding a bit of money each time you invest. If you started in the 1980’s (a retirement timeframe), a 100$ per month normal S&P 500 DCA would get you to 507K of net worth… or a whopping 457k of gross profits, excluding fees. The same time frame and monthly figures in a triple leveraged fund would have compounded to a mind boggling 6.6 million dollars, with 6.5 million of that being gross profits. I am personally applying the DCA strategy on triple leveraged ETF’s on an almost insignificant portion of my portfolio. Just like we discussed in this video. 00:00 – Intro 00:30 – Leveraged ETFs 02:59 – Potential (Lump Sum) 07:51 – Long Term Risks 10:58 – How To (Partly) Mitigate Risk 13:43 – My Strategy Disclaimer: Keep in mind, I'm not a financial advisor! If you lose money trading according to any of my opinions, that's your problem. #Leveraged #ETF #3xETFS