/biz/ - Business & Finance

>>18728937
>It's less of an issue with index and sector based stuff but leveraged commodity based ETFs should never be held long term
That's not true. The only advantage the index etf has to commodity etfs in term of vol decay is that the index is probably not quite as volatile. Commodity etfs look fugly because the underlying is mostly in contango.
Had you bought my reverse engineered 3x spy etf(without fees) at the 2007 top you would have only broken even in 2017 and would have been red on the last dip, compared to vanilla spy's breakeven in 2013 and still massively green in the last dip.
Buying 3x for a long term hold in the current situation is quite stupid when you're just a noob.