Leveraged ETF returns/rebalancing

Discussion in 'ETFs' started by lime, May 26, 2024.

  1. %%
    NICE chart, actually readable :D:D.
    Green line 3x leveraged , not likely to ever be that smooth .
    And in a year or ANY period like 2015, 3 x longs + and 3 x inverse would + did get get chopped + slopped a lot ;
    + your black line , say for SPY [non leveraged, but liquidity leader] would outperform 3 x leveraged with dividends , like 2015.
    As your charts hints, maybe some times when some may want a 3X:caution:
     
    #21     May 28, 2024
  2. nitrene

    nitrene

    Since 10/10/2022 SOXL is up 8X and NVDA is up 10X. Not bad for a 3X sector fund. I mean its hard to say which one carries more risk.
     
    #22     May 28, 2024
  3. qwerty11

    qwerty11

    Untrue, the lowest SOXL has been in 2022 was just below $10...
     
    #23     May 28, 2024
  4. qwerty11

    qwerty11

    #24     May 28, 2024
    murray t turtle likes this.
  5. lime

    lime

    The so-called double short ETFs trade is quite risky then, just like any short vol trades. It will blow up badly if the underlying trends strongly. Plus the high short cost on the inverse ETF leg.
     
    #25     May 29, 2024
    murray t turtle likes this.
  6. #26     May 29, 2024