Funny to compare SPY vs SPXL (3x ETF)

M

Math_Wiz

I know this happens frequently and yadda yadda. Just funny, that's all.

Comparing the weekly charts of SPY and SPXL.

SPXL is supposed to move 3x as much as SPY.

You could have bought SPXL in Feb 2020 for around $73, and you'd be flat as of now.
You could have bought SPY in Feb 2020 for around $$336, and you'd be up around 12% now.

What happened to SPXL giving you 3x your returns?

Haha, yes, I know how triple ETFs work, you don't have to explain it to me.
Just saying it's funny.

Math_Wiz
 
I guess it may be less funny when you apply Einstein's theory of relativity.

2-year SPXL vs SPY:
upload_2021-1-16_15-58-5.png


9-month SPXL vs SPY:
upload_2021-1-16_15-59-0.png
 
Leveraged ETFs are defined by very simplistic algorithms that perform poorly in a variety of volatile choppy conditions, this is yet another example.
 
KCalhoun said:
Interesting...... but check TQQQ vs QQQ
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%%
LOL/ I haven't even looked @ TQQQ for SAT-SUN;
QLD tends to do better than SSO or SPY, by a bunch.
Great charts, not that SPXL or UPRO is designed for long term holding/they are not.
All those including SPY, pay a good dividend except TQQQ+ QLD
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Do any of you guys understand the actual goal of these products?

For a "math wiz" who understands how they work, and don't need it explained to them - why do you seem surprised it is performing exactly as it should?
 
Since Jan 1, 2012 here are the gains from the 5 large 3X ETFs:

TQQQ 4840%
SPXL 1155%
UPRO 1262%
UDOW 781%
TNA 294%

I've owned all these in my Roth since 2012. I also owned some AAPL and it is only up 900%.

I'm not sure why there is a discrepancy between SPXL & UPRO.

The most amazing performance in 2020 was the FANG+ 3X ETN -- FNGU. From bottom to peak it was up almost 13X -- 1164%.
 
Math_Wiz said:
Bizarre conclusion/assumption. "I know this happens frequently" should be interpreted as "I am not surprised."
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Why is it "funny" then? It's as "funny" as SPY going up the same amount at the S&P 500 or an ITM put option going up in value by $5 when the underlying drops by $5 or losing money selling VIX call options even though it always reverts to the mean. They're all simply doing exactly what they're designed to do. It's an odd comment that something normal and working exactly as it should is "funny" is all everyone is pointing out to you. Or perhaps you just have an odd sense of humor; nothing wrong with that but don't be surprised when it earns some puzzled looks.
 
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