chriak8292·5 ปีที่แล้ว·discussLeveraged EFTs outperform VTI/VOO (in terms of total return) over 30-40 year investment horizons. Period.Now, the risk (potential one-year downside) is not for everyone.
chriak8292·5 ปีที่แล้ว·discussRisk-adjusted return (Sharpe)- VTI/VOO: 0.6 to 0.8- Leveraged S&P500 ETFs: 0.5 to 0.9- Savings account: positive infinity- Treasury bonds: 1.0 to 1.2Leveraged index funds give approximately the same risk-adjusted return as passive index funds but with 2-2.5x the absolute return (eg, UPRO).However, if you have a weak stomach (you don’t like seeing your balance drop), then leveraged ETFs are not for you.