WSJ article - Are Leveraged ETFs Worth the Costs and Risk?

[FIREd_2015]

"...are these exchange-traded funds worth the relatively high costs, considering the volatility to which they are prone and the tracking error...we investigated the average 10-year returns to each grouping by index and how they are structured in terms of magnification (bull or bear structure)...If you are willing to take on the risk of a magnified performance, leveraged ETFs do yield better returns over the long run for all categories except small-caps (those tracking the Russell 2000)..."

https://www.wsj.com/finance/investing/leveraged-etfs-risk-cb95693f?page=1

https://researchshorts.com/wsj-are-leveraged-etfs-worth-the-tracking-error-7a5dedf2ac1b

 

[Texas Proud]

Behind paywall... and the second link only has a short blurb...

 

[pb4uski]

Looking at the graph for the S&P 500 on the second link, the -2x and -3x looked proportional to the -1... more proportional than the +2 and +3. Perhaps short the bear leveraged ETFs as a bull play rather than buy the bull leveraged ETFs?

 

[Surewhitey]

I got bit on some leveraged short & vix etfs long ago...no thanks.

 

[VanWinkle]

To answer the question posed in this thread- NO