Let’s imagine I were confident that we were going to see a bull market for the next several years. (I’m not; just a hypothetical.) I want to keep fees low and invest in index funds like SPY or VTI. But putting 100% of my money in stocks isn’t enough; I want at least 150%!
What would be my best option for doing so?
I can see a few possibilities. I could put some portion of my money in a leveraged ETF like UPRO, but then I’m paying 1% in fees. I could buy deep ITM options on SPY, but I can lose money on bid/ask spreads, and in both cases I’m missing out on dividends. I could just buy more on margin, but then I’m paying over 2% for the loan. I also hear about futures, but I’m still a newbie and don’t understand how to use them for this purpose. What to do?
Submitted May 15, 2018 at 03:39AM by finredde https://ift.tt/2L01o2x
