Are Leveraged ETFs Worth the Costs and Risk?

[Sergio123]

I trade both TZA and IWM options, depending upon how I like the structure and setups.

When you realize how costly company stock shares are, then you don't mind having Direxion trade Russell contracts on your behalf.

 

[murray t turtle]

Leveraged ETFs can perform excellent in break outs but poorly in chop/flat conditions.

View attachment 322422

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GOOD points + good %%;
except FNGU has had some zero \none\3 + 10 year + other periods.
BIG bid \ask also, so short term disadvantage
QQQ is better on 50dma than FNGU even though that may not mean a hill [ or downhill LOL]of beans to some.

 

[mervyn]

spxl tqqq, others not sure

 

[murray t turtle]

spxl tqqq, others not sure

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Fine with a good trend;
but a mini trend or flat trend , CASH+ETFs, like SPY or VOO,qqq =better.
DEC 8, 2015,IBD old Newspaper;
SPY+1.4% YTD + dividends\SPXL {-0.45 negative]Of course they are designed for daily-short term, as noted by js78 here}
SPXS{ -20%negative YTD }
TQQQ+26%, same period. TZA= [-12% negative\same YTD ]
SCHW warning + funny but true. ''NOT suitable for all investors'' LOL