What's the difference between leveraged ETF's and leveraging your money into normal ETF's.

Is there a big difference in investing in a 3x leveraged ETF and investing 3 times your money through margin in a regular ETF?

Margin money costs 1.25% in interest on yearly basis at my broker, add say 0.1% in regular ETF fees, that's 1.35% per year. A 3x leveraged ETF could cost about 0.9% in fees, so I guess using margin money is slightly more expensive in this case.

Are there any other differences?

Submitted November 04, 2018 at 08:36AM by JaJammerJan https://ift.tt/2JE92zl