Best Leveraged ETFs for Long Run?
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Subject Author Date
Best Leveraged ETFs for Long Run? basis_consultant@hotmail.com 05-29-2009
Posted by basis_consultant@hotmail.com on May 29, 2009, 11:04 pm
Hi,

I am looking for a quality leveraged ETF, indexed to a major market
(U.S or Canada preferably).

My consideration is as follows:

(i) I intend to hold it for the long run: Preferably, decades. I do
not intend
to day trade in it. I am hoping that over 15+ years the indexes
should
increase (Perhaps by their historic rate of 9 to 10% or so yearly),
and
that I can leverage that increase.

(ii) I read that most leveraged ETFs do not provide the expected
leverage; i.e A 2x Dow ETF may increase in value by 15% if
the Dow increases by 2% due to management fees, costs of
their options, etc..

I am looking for a leveraged ETF which can best track an index
over the long-run (i.e One which will come closest to increasing in
value by 20% over a year f it is 2x and its index increases by 10%).

(iii) I am hoping to be able to leveraged to a major index, and to
avoid
leveraged sector ETFs (Though I may consider them). I may also
consider ETFs leverages to value plays (Low P/E, book value, etc..)
if they exist. I prefer not to short leveraged bear ETFs.

Any ideas or links will be greatly appreciated.


Thanks,
DF



Posted by =?ISO-8859-1?Q?-=3DDirtBag=A9? on May 29, 2009, 11:56 pm
basis_consultant@hotmail.com wrote:
> Hi,
>
> I am looking for a quality leveraged ETF, indexed to a major market
> (U.S or Canada preferably).
>
> My consideration is as follows:
>
> (i) I intend to hold it for the long run: Preferably, decades. I do
> not intend
> to day trade in it. I am hoping that over 15+ years the indexes
> should
> increase (Perhaps by their historic rate of 9 to 10% or so yearly),
> and
> that I can leverage that increase.
>
> (ii) I read that most leveraged ETFs do not provide the expected
> leverage; i.e A 2x Dow ETF may increase in value by 15% if
> the Dow increases by 2% due to management fees, costs of
> their options, etc..
>
> I am looking for a leveraged ETF which can best track an index
> over the long-run (i.e One which will come closest to increasing in
> value by 20% over a year f it is 2x and its index increases by 10%).
>
> (iii) I am hoping to be able to leveraged to a major index, and to
> avoid
> leveraged sector ETFs (Though I may consider them). I may also
> consider ETFs leverages to value plays (Low P/E, book value, etc..)
> if they exist. I prefer not to short leveraged bear ETFs.
>
> Any ideas or links will be greatly appreciated.
>
>
> Thanks,
> DF
>
>

Myself I would be buying a private equity players as I think they will
be sharpshooting at deals for years. Fortress (FIG) Blackstone(BX) and
Blackrock (BLK) These are worth thinking about.. IMO

( When someone says they are LONG TERM holders i honestly don't know
anything about that LONG of term.. Better ask the real old farts on that
long of term). I think 1-5 yrs maybe.. but any more I haven't a clue.

Posted by catalpa on May 30, 2009, 2:00 am

> Hi,
>
> I am looking for a quality leveraged ETF, indexed to a major market
> (U.S or Canada preferably).
>
> My consideration is as follows:
>
> (i) I intend to hold it for the long run: Preferably, decades. I do
> not intend
> to day trade in it. I am hoping that over 15+ years the indexes
> should
> increase (Perhaps by their historic rate of 9 to 10% or so yearly),
> and
> that I can leverage that increase.
>
> (ii) I read that most leveraged ETFs do not provide the expected
> leverage; i.e A 2x Dow ETF may increase in value by 15% if
> the Dow increases by 2% due to management fees, costs of
> their options, etc..
>
> I am looking for a leveraged ETF which can best track an index
> over the long-run (i.e One which will come closest to increasing in
> value by 20% over a year f it is 2x and its index increases by 10%).
>
> (iii) I am hoping to be able to leveraged to a major index, and to
> avoid
> leveraged sector ETFs (Though I may consider them). I may also
> consider ETFs leverages to value plays (Low P/E, book value, etc..)
> if they exist. I prefer not to short leveraged bear ETFs.
>
> Any ideas or links will be greatly appreciated.
>
>
> Thanks,
> DF
>

No leveraged funds are for the long run. Leveraged funds are designed to
provide tracking with their multiplier to their underlying index on a daily
basis, not a multiday basis.

If you want leveraged index tracking on a multiday basis you have to do it
yourself.



Posted by BuffetHater on May 30, 2009, 7:31 am

>
> If you want leveraged index tracking on a multiday basis you have to do it
> yourself.

And the margin calls, upgrades and frauds will defeat you within days
of your
attempting to do anything with leverage. Keeping it simple and blue
chip
and you can lose 90% of your money as many here have found out.

Posted by shortT on May 30, 2009, 10:41 am
>
>
>
>
> > Hi,
>
> > I am looking for a quality leveraged ETF, indexed to a major market
> > (U.S or Canada preferably).
>
> > My consideration is as follows:
>
> > (i) I intend to hold it for the long run: Preferably, decades. I do
> > not intend
> > to day trade in it. =A0I am hoping that over 15+ years the indexes
> > should
> > increase (Perhaps by their historic rate of 9 to 10% or so yearly),
> > and
> > that I can leverage that increase.
>
> > (ii) I read that most leveraged ETFs do not provide the expected
> > leverage; i.e A 2x Dow ETF may increase in value by 15% if
> > the Dow increases by 2% due to management fees, costs of
> > their options, etc..
>
> > I am looking for a leveraged ETF which can best track an index
> > over the long-run (i.e One which will come closest to increasing in
> > value by 20% over a year f it is 2x and its index increases by 10%).
>
> > (iii) I am hoping to be able to leveraged to a major index, and to
> > avoid
> > leveraged sector ETFs (Though I may consider them). I may also
> > consider ETFs leverages to value plays (Low P/E, book value, etc..)
> > if they exist. I prefer not to short leveraged bear ETFs.
>
> > Any ideas or links will be greatly appreciated.
>
> > Thanks,
> > DF
>
> No leveraged funds are for the long run. Leveraged funds are designed to
> provide tracking with their multiplier to their underlying index on a dai=
ly
> basis, not a multiday basis.
>
> If you want leveraged index tracking on a multiday basis you have to do i=
t
> yourself.

Why are they not for the long run?
Can you please explain by example?
Thanks.

shortT

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