Originally Posted by bada bing
Not making financial advice, just noting something you may or may not have considered. 3x (and 2x) ETF's are generally considered to be poor long term investments because of volatility decay
. For the whole of 2020 you certainly didn't get 3x the underlying performance of the indexes, but you did assume 3x the risk. If you want to juice returns with leverage over a longer time frame, you'll do much better opening a margin account and directly levering your investments (and I'm certainly not advising leverage, just making an observation).
It looks to me like over long periods that the 3x lags the index by about 1-1.3% so the actual average long term performance is 2.7-2.8x rather than 3.0x.
Rolling returns for 33% SPXL/67% cash vs 100% SPY
3 years.... 12.19% vs 13.39%... 1.20% difference... 2.7x
5 years.... 12.70% vs 13.69%... 0.99% difference... 2.8x
7 years.... 12.67% vs 13.65%... 0.98% difference... 2.8x
10 years.. 11.94% vs 13.22%... 1.28% difference... 2.7x