I’m not understanding why leveraged ETFs are bad long term holds.
Since March of 2010, The total return for TQQQ has been 10,921% while a regular index fund like VTSAX got a 274% return. Why would holding a leveraged index fund like TQQQ be a bad thing? Even if it tanked 50% in a crash, you still made a lot more money than holding VTSAX, right? I understand that it’s more volatile but does that matter for holding long term? Overall your returns would be better.
Can someone explain this?
Submitted July 21, 2021 at 10:35AM by SimonDayton https://ift.tt/3y2bQyE
