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1

Leverage has costs other than movement of the underlying: A leveraged ETF also loses value in response to volatility. Also, your downside risk would be greater than it would otherwise be due to the leverage.


5

When the index goes down, leverage will exacerbate the losses instead of offsetting them.


0

That doesn't make sense. If the ETF is leveraged, then it shouldn't be tracking the index, it should be tracking a leveraged version of index. You're trying to engage in accounting shenanigans to hide the fee. Depending on how this were implemented, it could lead to prison time. If there are administrative costs, then they have to be collected somehow. You ...


32

Leverage can be good to increase gains, but it amplifies movements of a stock. Also downward movements. Paired with the increased gains is also an increased risk, and that changes the investment vehicle. The goal of an index fund is to passively follow an index as closely as possible. Leverage could reduce tracking error on upward movement, but would ...


1

"Not a homeowner, but will likely start looking in the next 2-3 years" This is the key point of your question. A 2-3 year 'investment horizon' is too short of a time frame to invest in equities, or any risky assets. The reason is that you need to give time for risky assets to recover, if there is a downturn in that market. If you had 10+ years ...


-5

House-hacking is probably the most effective thing you can do for your financial runway. Craig Curlop covers this strategy intensively in his book, The House Hacking Strategy. Its power is also fairly demonstrated in Scott Trench's book, Set For Life, which also covers the topic of investing and constructing one's financial plan for the everyday worker. ...


5

My advice, get proper financial advice, but if not, I've put some good UK specific resources in this post For anyone who is starting off, with the intention of potentially investing a significant amount of money, or maximising your return on money held, a financial advisor is a good first port of call. You should look for an independent financial advisor, as ...


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