Just a very broad, general question from someone who knows very little about futures: do not the leveraged 2x/3x funds and what not actually use futures to achieve their leverage? If so is not buying a leveraged ETF not kinda-sorta similar to buying futures on the same index? Obviously precise details will differ, but isn't that the overall gist of it?
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Buying 3x bull sp500 for long term portfolio
- Thread starter john7722
- Start date
Just a very broad, general question from someone who knows very little about futures: do not the leveraged 2x/3x funds and what not actually use futures to achieve their leverage? If so is not buying a leveraged ETF not kinda-sorta similar to buying futures on the same index? Obviously precise details will differ, but isn't that the overall gist of it?
futures provide leverage
3X ETF gives you 3X of daily returns
So not similar at all due to daily recalculation but the return might be somewhat similar
I feel more comfortable with 3x then futures
So my conclusion based on the help I received that it is ok to buy 3x etf with a very tiny part of your portfolio if market drops to the level I like. Otherwise I am not buying it.
BOYS...I JUST GOT PAID WITH SPXL TODAY 6/22/22!
6/24/22....boom....another pay day!
I had extra cash right when sp500 hit low during covid, I bought sp500 at around 2500 . At that time I didn't think of buying 3x . I would have some $ in 3x. I'll wait a bit to see how it plays out. If I lose 10% of my porfolio because of some 10 year long recession then be it....By that time i'll have some extra $ and by SPXL until we have a recovery .
Longest recession in US history was 3 years 7 months. It's certainly getting silly when people talk about 10 year recessions and Calhoun predicted below Covid lows by end of summer.