As a buy and hold investor, what’s wrong with holding leveraged ETFs like UPRO or TQQQ if you’re not concerned about volatility? I understand the concept of decay but looking at the historical charts of UPRO vs VOO and TQQQ vs QQQ, leveraged ETFs have historically outperformed their non-leveraged counterparts by a large margin over the long term.
The only disadvantage I see with leveraged ETFs is extreme volatility and the fact that investments may take much longer to recover after a prolonged bear market. But with a 30-40y investing timeline, I don’t see how this could be an issue if you DCA into the leveraged ETFs
Submitted May 26, 2021 at 01:51AM by DogtorPepper https://ift.tt/3fL0UgO
