Today we started a new position in the ProShares Ultra QQQ (QLD). Folks, you’ve gotta buy this stuff when it’s on sale. Read why we invest in QLD right here: Best Long-Term Performance Trading – Leveraged Equity ETFs 1.1
Best Long-Term Performance Trading – Leveraged Equity ETFs 1.1
Before I introduce the data on this group of ETFs, I need to point out the fact that leveraged ETFs are designed as trading vehicles and not long-term investments. If you want to know the dangers of these products you need to ‘Google’ this phrase: “leveraged ETF risk”. You will be inundated with article after article with headlines such as:
“Why Leveraged ETFs Are Not a Long-Term Bet”
“Why That Leveraged ETF Is A Bad Idea”
“Why Leveraged ETFs Are Horrible Investments”
“Leveraged ETFs: Why Investors Should Beware”
“Run, Don’t Walk, From Leveraged ETFs”
This sounds scary, right? Well, if you don’t know what you are doing, or you don’t have a strong stomach for volatility, then yes, you should stay away from leveraged ETFs altogether. But, if after reading all the horror stories about leveraged Exchange Traded Products, including my own horror story, you still feel compelled to purchase these investment vehicles, then this article is for you.
As I stated above, you can find many articles that condemn and warn people about using leveraged ETFs. But, if you search long enough and hard enough, you can find articles written by academics that support the use of leverage with mathematics instead of emotion.
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