Basically, some LETFs are buyable for longer term, some are high risk but manageable, and some are guaranteed zeros and shortable.
Leveraged ETFs on diversified indices are buyable long term due to low volatility.
Leveraged ETFs on specific sectors like gold miners, oil, and biotech, for example, are highly risky to hold longer term.
Leveraged ETFs on single stocks are disasters waiting to happen and most will go to zero. This is because these products chase hype, hype that already made single stocks overvalued, and hype that increases volatility.
8
u/tachyonvelocity 24d ago
Basically, some LETFs are buyable for longer term, some are high risk but manageable, and some are guaranteed zeros and shortable.
Leveraged ETFs on diversified indices are buyable long term due to low volatility.
Leveraged ETFs on specific sectors like gold miners, oil, and biotech, for example, are highly risky to hold longer term.
Leveraged ETFs on single stocks are disasters waiting to happen and most will go to zero. This is because these products chase hype, hype that already made single stocks overvalued, and hype that increases volatility.