The Truth About Leveraged ETFs

8:44 the chart title should have shown UPRO (3X), not SSO (2X) from the previous example.
9:12 the chart title should have shown EET (2X emerging markets).
Sorry about the editing hiccups in this one!

$10,000 in a 3x leveraged S&P 500 ETF (UPRO) at launch in 2009 would be worth about $1.3 million today, more than 10x a regular S&P 500 ETF. So are leveraged ETFs a smart long-term tool or a disaster waiting to happen?

In this video, Ben Felix, Chief Investment Officer at PWL Capital, gives you a framework for deciding whether leverage makes sense for you, and whether leveraged ETFs are a good way to get it.

*Links*
Check out PWL’s Risk Profiling Tool: https://research-tools.pwlcapital.com/research/risk-profile?utm_source=content&utm_medium=youtube&utm_campaign=benfelix_yt
_yt

See your own numbers with our app (based on Choi et al.): https://research-tools.pwlcapital.com/research/lifecycle-portfolio-choice?utm_source=content&utm_medium=youtube&utm_campaign=benfelix_yt

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*Timestamps*
00:00 - Intro
00:48 - When Leverage Makes Sense
07:56 - The Risk
10:00 - Leveraged ETFs
12:10 - Math Time.
17:05 - Hidden Costs
18:16 - Using Leverage Without Going All-In
19:47 - What You Need To Know

*References*
https://zbib.org/4cb11648b55b4c469b6d8b5137d18612

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I will never reach out to you on social media platforms or WhatsApp to give financial advice. These are scammers trying to commit fraud.

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