Thursday, February 15, 2018

[Stupid question] Why is it bad to hold $SPXL long term?

Everything I've read says it's generally not good to hold leveraged ETF's for the long term due to rebalancing and slippage, which makes enough sense to me, but $SPXL is up ~439% over the past 5 years whereas $SPY is only up ~98%.

What am I missing here? Why would I not long $SPXL if I expect the market to continue to rise? I know there's something glaringly obvious that I'm overlooking.



Submitted February 15, 2018 at 04:14PM by issamememyguy http://ift.tt/2suR39v

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