$500G cash that you cant afford to risk, where to put it?

amother

Slategray

Wed, Jan 08 2020, 4:36 pm

amother [ Vermilion ] wrote:

The S&P is up 180% over the past 9 years. On a 2X leveraged product, you should be averaging 25% a year. Half your money went to fees.

If you had bought a pure 2x leveraged ETF 9 years ago (like SSO or something) you would've had 500% returns by now. I'm guessing that you don't have 6x the money you started with.

A lot of people made a lot of money in the dot com bust. It doesn't mean they were good investments... It means they were in the right place at the right time.

Any leveraged product delivers outsized returns during bull markets and outsized losses during bear markets. Period.

We opted to forgive some of the upside advantage for the zero floor and tax free growth. And no, our fees are about .5% annually. I don't see how your outsized losses statement makes sense if there is a floor of zero. Leveraged ETFs are risky investments, you are comparing apples to oranges.