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Surf the ETF wave: Master the market with wisdom & ease!
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My Losing Leveraged ETFs

My ETF holdings are mainly the leveraged ETFs which have higher risk profile compared to other type of ETFs. However, my problem with my ETF holding is their lackluster performance. Luckily though they are only a small position of my overall portfolio and I am not looking at profit near term.
That being said, if you google about leveraged ETFs, you will see the red flag as below immediately.
Leveraged ETFs decay due to the compounding effect of daily returns, volatility of the market and the cost of leverage.The volatility drag of leveraged ETFs means that losses in the ETF can be magnified over time and they are not suitable for long-term investments.
One way I try to offset the compounding effect and the cost is to sell some covered calls. I do that sometimes but not very often.
So why I buy Leveraged ETFs?
The reason is simple, I wanted to experiment with a small holding that promises 2x return from the underlying stock. I do that on the stocks that I believe in their ability to outperform the market for the long term. You can say that these are all bets and there may not be happy ending - well noted about this.
Which Leveraged ETFs I hold?
Let's take a look at each of them
$GraniteShares 2x Long NVDA Daily ETF (NVDL.US)$ - Down about 14%. I didn't DCA (which I should) during the recent dip because I am almost full invested at this point of time. $NVIDIA (NVDA.US)$
My Losing Leveraged ETFs
$Direxion Daily GOOGL Bull 2X Shares (GGLL.US)$ - Down almost 15% due to the sentiment around Antitrust lawsuit against $Alphabet-A (GOOGL.US)$.
My Losing Leveraged ETFs
My Losing Leveraged ETFs
How I feel about Leveraged ETFs?
Most will advise not to hold any leveraged ETFs for long term. It rises very fast during bull run, and goes down equally fast during the sell off. It turns your facial expression from to and vice versa just as quick. If you cannot ignore the big swing on the short term basis, it is not advisable to hold any of them.
Do you invest in Leveraged ETFs? Why? Comment below. To the moon 🚀
Here I post some of my P/L for the month of Sept.
My Losing Leveraged ETFs
My Losing Leveraged ETFs
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