Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Leveraged ETFs Might Actually Be Good for You By: ETFdb September 27, 2018 at 08:00 AM EDT “Weapons of mass financial destruction.” That’s exactly how many investment pundits describe leveraged ETFs. And there’s good reason for that. These ETFs which offer 2x, 3x – and in Europe 15x – the daily return of an index can seriously turn the good intentions of compounding into bad ones. That’s due to a concept called volatility decay. Various dips and drops to the leveraged index can cause catastrophic losses for portfolios. To that end, ETFs like the Direxion Daily S&P 500 Bull 3X Shares ( SPXL B+ ) are only viewed as short-term trading positions. But is that the right attitude toward leveraged ETFs? Are they really the “weapons of destruction” that people claim them to be? Some research says no. The truth is that a little leverage can go a long way to boosting overall portfolio returns over the long haul. The key is not overdoing it. Learn here about the hidden risks and costs of ETFs. Read More >> Related Stocks: Junior Gold Mine Bull 3X Direxion Portfolio S&P 500 ETF S&P 500 Bull 3X Direxion SPDR S&P 500 ETF Trust Ultra Health Care 2X ETF Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Leveraged ETFs Might Actually Be Good for You By: ETFdb September 27, 2018 at 08:00 AM EDT “Weapons of mass financial destruction.” That’s exactly how many investment pundits describe leveraged ETFs. And there’s good reason for that. These ETFs which offer 2x, 3x – and in Europe 15x – the daily return of an index can seriously turn the good intentions of compounding into bad ones. That’s due to a concept called volatility decay. Various dips and drops to the leveraged index can cause catastrophic losses for portfolios. To that end, ETFs like the Direxion Daily S&P 500 Bull 3X Shares ( SPXL B+ ) are only viewed as short-term trading positions. But is that the right attitude toward leveraged ETFs? Are they really the “weapons of destruction” that people claim them to be? Some research says no. The truth is that a little leverage can go a long way to boosting overall portfolio returns over the long haul. The key is not overdoing it. Learn here about the hidden risks and costs of ETFs. Read More >> Related Stocks: Junior Gold Mine Bull 3X Direxion Portfolio S&P 500 ETF S&P 500 Bull 3X Direxion SPDR S&P 500 ETF Trust Ultra Health Care 2X ETF