Apart from the fact that this ETF is not really designed for a savings plan and buy & hold, I would be cautious with something like this just below the ATH of the indices.
And to quote @Epi: think of the drawdown with such an instrument.
And to quote @Epi: think of the drawdown with such an instrument.
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@Der_Dividenden_Monteur Thank you for your feedback. Why should the ETF not be suitable for buy & hold? 26% return per year
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@Max095 the 26% is an average that you see in the benchmark, yes. But that's not how it works with leveraged products, you have the path dependency here, i.e. if there is another fall in tech like 2022/23, you have -60% with the ETF and since you have a fixed leverage and not a dynamic one like with a derivative, it takes significantly longer to make up for the losses.
Or take a look at how @Epi works with its gtaa strategy, where you only invest in the leveraged ETFs within fixed parameters.
Or take a look at how @Epi works with its gtaa strategy, where you only invest in the leveraged ETFs within fixed parameters.
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@Der_Dividenden_Monteur In 2022 it made -30% from the high to the low. The index from $CL2 is the MSCI USA, which has just under 600 stocks, so it is quite well diversified. I wouldn't go all-in at the ATH, but there's really nothing wrong with a small savings plan if you're aware of the risk.
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