Buying and holding leveraged S&P 500 ETF

Hello monkeys,

What are your thoughts on dollar cost averaging into a leveraged S&P 500 ETF such as SPUU and UPRO for the long term?

Initially, it seemed like a pretty good idea, given I invest only in the S&P 500 as far as stocks go, but I read some articles that said the higher fees and volatility could result in lower returns over the long term

4 Comments
 

FEDFUNDS topped so now banks won’t have as much new cash from loans coming in, won’t be parking as much new cash from interest in equities. Leveraged SPY ETF is great but next 52 weeks I would hold off

 

Volatility decay will destroy the position. If you bought the NASDAQ in peak 2021, you would have had a rough 2022, but now you've more than recovered that position. With an amplified one you still wouldn't break even. This is due to the nature of losses being much worse. A 5% loss is a lot worse than a 5% gain, and compounded you end up needing something to always go up for it to work. Just buy the index, because if things go bad they will go WAY worse if you have money in leveraged ETFs

 
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