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thinkorswim - Stop Wasting Money & Don't Fall for the Price Defaults
Can anyone explain why SSO and SPUU produce their (similar) gains in totally different ways?
VOO vs SSO- which one is good for long term investment?
I locked myself in a box spread and levered myself at 3.33x on SPY/QQQ
~$18k gains, holding for a few months since the low. ignore the -100% its an error, hopefully ; )
How to balance long term leveraged/unleveraged ETFs
Is this what Elon said he was looking for?
Dip Buying BackTesting - SPY & QQQ with Leveraged Accounts
Active Health Foods! NEW COMPANY BUY QUICK!
If you're young and have a very long investment horizon, then investing in stocks using leverage DECREASES your risk
If I put half my money into the SPY and half my money into SSO (2x leveraged spy) - would this be the same as 1.5x leverage?
TQQQ - The perfect ETF for a strong bull market
Debunking the "Leveraged ETFs Are Not a Long-Term hold" myth. Big backtest
$RECAF.....last huge oil deposit
What do you think about leveraged ETFs, are be-weekly refreshed ETFs even a thing ?
ATDS Lands New Contract, Revenues Keep Increasing
Canadian LPs WILL be allowed in the US markets *WHEN* MSOs are allowed to uplist. $APHA/TLRY 🚀🚀🚀
Mentions
Bought 600 shares SSO premarket, feeling that might have not been a good idea
I’ve been holding 40% allocation to SSO since late January, 2022. I’m more than a little familiar with vol decay. A rebalancing strategy in a tax advantaged account more than offset that. I’ve outperformed since opening the position. Vol decay is overstated. It’s important to understand it, as well as cost of leverage, but it’s not the boogeyman it’s made out to be.
Are you familiar with decay? SSO is not suitable for long term investing and will underperform in volatile markets (which were obviously experiencing). Not telling you what to do but would give a read or two about leveraged ETFs with an open mind.
You have simulations and backtests for this portfolio? I went back to look at this and it hasn't really performed all that well in general. 2018 DFIVX didn't do well, which dragged the performance through the ground, especially with leverage. 2020 the performance wouldn't be great either because there wasn't as much of a turnaround in VFMF (which would arguably take up most of the pie) when compared to even SPY. Monte Carlo wouldn't be that extensive due to lack of VFMF data. Maybe you can just mix a bunch of profitablity/value/momentum etfs as a proxy but I doubt that would help. Even then, with a proxy of some kind, returns wouldn't be anything special for the last 10 years. I don't see any concrete data to suggest this outperforms even SPY over the last 10 years let alone SSO mixed with some international exposure.
You just made another bad read. I’m not positioned for sentiment, at all. I’m positioned for uncertainty. 40% SSO (2x S&P 500), 30% SPLG, 30% cash. Effectively 110% S&P 500 exposure, with a 30% cash pile. I’ll outperform a little if the market moves up. I’ll underperform a little (in the near term) if the market goes down, but have cash to deploy.
SSO dropped over 30% in 2018, 50% in 2020, 45% in 2022, and 30% just recently. Not everyone can handle these heavy swings especially if you are into leverage and margin. In hindsight it's easy to think you can hold but in reality you won't know where the end is.
I’m not positioned for an expectation. I’m positioned for uncertainty. 30% cash + 40% SSO (2x S&P 500) + 30% SPLG. Effectively 110% S&P 500 exposure. I’ll outperform a little if we move up. I’ll underperform a little if we move down, but have a lot of cash to deploy at lower levels.
I’m in the market, but also prepared for a possible downturn: 40% SSO (2x S&P 500), 30% SPLG = effectively 110% S&P 500, and I have a 30% cash position. I’ll out perform if we go up, and have cash to deploy if we move down. I’m leadership & operational planning in distribution, working for an S&P 100 company. Yes, I’m very concerned for what could happen. I’m also conscious of the fact that things don’t always go the way we think they should.
Sold to close MS 8/15 115 strike calls, purchased yesterday. Sitting in 40% SSO, 30% SPLG, 30% cash — effectively 110% S&P 500, watching for opportunities.
Not using Microsoft products is pretty easy for a tech company. AWS is superior to Azure, you can use something like Okta for SSO instead of Active Directory. Teams is complete ass to the point I would use old school IRC over it but Gsuite replaces the O365 stack pretty well. Their hottest "product" is Azure OpenAI because it can be tough to get enough capacity from OpenAI. However, all the companies I named are also US companies. There's a drop off in capabilities when you are using other alternatives where yeah it's possible but it starts to become something you're using dedicated employees for each product.
Why’s this such crap when QLD and SSO are fine?
You are still on time to save up for retirement. DCA 500 bucks a month into SSO (SPX 2x daily) and in 20 years you will have a million bucks
Closed GOOG 7/18 155 strike calls and my long shares at open. Rebalanced to 40% SSO, with the other 60% repositioned to 30% SPLG, 30% cash. No open options. Effectively at 110% S&P 500 + 30% cash. Watching for opportunities. Eyeing MS if the move down around next earnings cycle.
Bought 500 shares of SSO on margin today
Starting to think that sso (spyx2) is the best risk :reward etf if you want more risk. 5 years to date performance 174.79% SSO 156.13% BRKB So even if you're regarded enough to sell during a massive sell off you're still better off than brkb. During bull runs it massively out performs brkb. Waiting for the hate bear market drag comments now
Man, fuck it I'm going to start averaging in to SSO.
Come on SSO, I need you to go even higher
I would place limit buy order + extended hours + good til cancelled: Allocate 50% to S&P buys I would put 2 limit orders (1/3 + 1/3) in for an S&P 500 ETF for prices that equate to 25% down from the recent high and another one for 30% or 33% down from the recent high. I would put 1 order (1/3) in for the S&P 500 2x leveraged ETF (like SSO or others) with a price that would correlate with either the S&P 500 being down 37.5% to 40% from the recent high. Allocate 25% to Nasdaq buys via one of the many suitable ETFs, again splitting each by 1/3 of the funds allocated to this area and just like with the S&P 500, I would pick my down target amounts for the two buys that are unleveraged. I would pick one of the 2X leveraged bull funds and the corresponding/calculated down level for that buy to transact. Allocate 25% to a preferred international (ex USA) fund and figure out my calculations for buy points and do the same there - with all being standard unleveraged funds. Then go back to doing whatever you like doing in your free time. You can also just place the first buys for each category, keeping the order allocated funds in a 1-3 month T-Bill fund like NEAR (or numerous others) or a MM fund that pays about 4% on a monthly dividend basis - so you are at least earning some money from the funds that have not yet been invested or set-aside for open orders. The other option if you don't think the market will drop in the 40=-50% range is place a higher number of orders with smaller steps between each one. This helps you get more money in if the recovery starts sooner that you forecast or doesn't go as low as you feared(hoped).
> DCA into more SSO Same, can't fuck myself any harder than I already have been
I chose today to DCA into more SSO and RSST. Let’s see if I fuck myself.
Anybody that actually knows ANYTHING about stocks, knew this without trump saying it. You guys are dramatic and need to stay out of stocks. Time in the market vs timing the market. I'm sure plenty of people day trading got absolutely flattened. Sad but lesson learned. I was very successful trading credit spreads and thought, maybe I'll take out half and pay off my debt. Paid all my debt and then absolutely lost the other half within a couple weeks on IWM spreads. Needless to say, luck is a huge factor in trading and sometimes you get very unlucky. Don't gamble what you're not willing to lose. I didn't believe it at the time years ago, but DCA S&P (I like SSO because I too am a gamblin man), and using like 10% of your portfolio or less for options is the way to go.
what a chad. I held SSO lol
Glad I loaded on SSO, recovering losses from early morning puts
SSO is good to hold for very long term investments?
BUY SPY SPYI QQQ QTD SCHD SSO VTI. Thanks
Fear not. Take this as a learning opportunity. It reveals your risk tolerance. If you’re questioning things then add future money into USFR and gold. Or be a psycho like me and start loading up 2x etf SSO and jepi 50/50 LFG! I want to feel alive!
Rcl on a good discount. SSO a safe buy long
Fair,  they’re index LETFS like SSO
I am DCAing into VGT, VOO and some 2X SSO (leveraged Spy) still have 7 digits in cash.
Well SSO is up 160% in money weighted return (MWR) since June 2020 and my portfolio is up +189% in MWR in that timeframe. So far, I am coming out ahead, without even considering the tax savings I described. My point is that going forward, I will not just continue to come out ahead but be WAY ahead. UPRO is down like 12% YTD, I am up 10%. It's like not even fair, I'm using a fully diversified portfolio, of course I am going to crush leveraged large cap USA stocks. I use European options, it's impossible to exercise and/or assign. And even if they COULD be exercised, then sure, they get exercised and my cash becomes negative (aka I just borrow on margin from IBKR). As soon as I notice, I can then sell another box spread to erase that margin loan. I don't think you understand this topic very well.
SSO/UPRO = USA large cap, with high fees and daily-rebalanced (the volatility drag wrecks its returns long term). My portfolio = Globally-diversified, multi asset, smart-beta, rebalanced based on bands with no fees and super tax efficient as the losses in interest are booked as short-term gains every year. Seriously, which one do you think will come out ahead? I know which one I prefer.
I don't live in US, tax free here so am just putting stuff in ETF and little on some of mag7. I totally agree with you on the point that I should be buying now, I actually bought today and last friday. No options but might leverage a bit on SSO to reach 1.2x if spy drop to 20% drawdown, I got time so leverage and concentration isn't too bad. Thanks for that insights man, btw do you do options or long term investing. anything important to avoid while making decisions?
A common sensible approach is to just use UPRO or SSO to juice your US exposure, and then diversify with alts. Like, RSST gives you 2x by giving you 1:1 SPY/Managed futures, or RSSB, which is 1:1 VT/IEF (essentially), or NTSX gives you 90/60 SPY/IEF. Instead, you can get a way higher volatility contribution from longer duration bonds, which is similar to buying that bond leverage but without the leverage costs. For example, long duration behaves like TYD but without embedded leverage costs. This is by far, in my opinion, the way to go, especially for younger investors. Youth can handle vol, and buying even as much as 2x leverage on raw equities has been shown to be more optimal than unlevered equities in papers like Ayer's and Nalebuffs research on leverage, even in the circumstance that you wipe out in an event like the GFC and start again from zero. I prefer a less crazy approach, and take traditional portfolio construction wisdom and simply add modest leverage to it, slide out on bond duration to the long end, and diversify with managed futures. I get global equity exposure trend following funds, long bonds, and its all great. The three asset classes are uncorrelated to each other, they all have positive real expected returns, and they should help crutch each other when tail events like 2022 (stock and bond simultaneous bear market) occur, or GFC (huge stock bear market butressed by bonds and MF) similar to dot com too,
Am thinking into playing my first leverage play. Like tqqq or SSO. I think this will act as a rebalance because my shares have less value than before. Think of it to minimize drawdown.
The fundamentals are all decent—inflation tending well, earnings good, strong consumer with growing savings—so as long as Trump doesn’t go nuts it should be like his last trade war, 10% drop and gradual recovery over a year. Reinvested a third my spy holdings today into SSO anticipating the eventual recovery (minimal bleed in SSO compared to upro or qld), saving the 2/3rds for possible downside. Now all that’s left is to see if Trump does Trump.
My long term holds are index based. I default to always buying in those. I maintain a 40% SSO position. When I see a trade opportunity, I pull from the other 60% of the account. My trade targets are companies showing fundamental strength, taking moves down on narrative/headlines. When I see a chart set up I like, I revisit prior 4 quarter earnings, news and headline timing relative to chart moves, I look at the options chain, etc. I usually wait for a flattish low/bottom, and often go in with a buy-write. CCs on those are usually about 5 weeks to expiration and 5% or so out of the money.
I'm not saying it can't work, but there's a reason why just going all in leverage isn't objectively better. I actually would recommend looking into holding some 2x leverage funds (SSO, for example), and reading r/LETFs .
DCA into SSO like a responsible A-DULT
Well done! We have wildly different approaches, but good outcomes. I used 2022 to set up for recovery. -23%, +38%, +37%, currently matching the index YTD while holding a large SSO position.
Why not just SSO and chill regards?
As someone who is in the industry I can tell you Okta is becoming less of an edge. It used to be great but Microsoft has improved their identity management and SSO integrations to the point where Okta provides no additional benefit. And most enterprise organizations who use Microsoft already have the licenses to use these services at no additional cost.
Okta Verify is just a small product within the Okta suite of products. What Okta allows enterprise customers to be vendor neutral (not locked to Microsoft suite) and enabling SSO to all their apps through Okta Integration Network (https://www.okta.com/integrations/) which has over 7500 app integrations This allows IT admins to add app integrations with minimal friction whenever they onboard a new application into their company. Okta also has Identity Governance, Privileged Access Management, Advanced Server Access, Device Assurance, Identity Threat Protection, API Access Management just to name a few. You can explore more - [https://www.okta.com/workforce-identity/](https://www.okta.com/workforce-identity/) And this is only for Enterprise customers. They acquired Auth0 few years back which caters to Developers integrating Auth into their applications. This is mainly for the B2C space. And they have a lot of potential in that. What Okta provides which Microsoft doesn't is mainly vendor neutrality and catering to both IT and Developer personas. Hope this helps!
If I had money for hedge funds I’d totally do it right now. And then after the next market crash I’d cash out and yolo into long dated SSO calls
A post grad and you're not able to figure out how to invest or save money? You want it to grow fast? I bet you do lol Don't we all. Bold move - 100% TECL 3x leverage ETF has returned 44% YOY since 2008. You're probably not going to find a better return on the market besides this one. But hey, it's scary to put your money into an F1 racing machine and watch it take off to 200 and slow down to 50. The kind of ride is only made for adrenaline junkies like me. Someone like you and most others are better off taking the Honda Civic (VOO) out for a ride. Because you can only handle minor traffic slow downs. If you want to add a little tuner to your Civic - 80% VOO 20% QQQ If you want to add some flare with mods 50% VOO 50% QQQ If you want a 10 second car - get rid of VOO - go with SPXL or SSO at 50% and a 50 shot of NoS 50% TQQQ or TECL. If you want an Indy Car - 100% TQQQ If you want an F1 - 100% TECL. After that, if you're looking for something even more advanced and looking to fly - you have to go with some spec stocks and simply hope for the best.
It's fucking easy. Just buy SSO or UPRO and then do nothing
I’m the reason it’s going up. I have SSO bots on hundreds of websites
Beating the market is simple. Just add leverage. The issue is how much do you want to risk with that leverage. The sweet spot seems to be 1.5-2x leverage s&p500 for the long term. Go compare SSO vs VOO and see how easy it was to outperform.
110% S&P 500 + 30% cash. I get this with a 40% SSO (2x S&P 500) position, 30% VOO, 30% cash. This allows outperformance if the market goes up, while having cash to deploy if it pulls back.
No single stock is worth holding long imo. Especially when there are so many great aggressive growth index funds like QQQ, SPYG, VOOG, VUG, VONG, SPMO, XMMO, XSMO, SSO All of these can easily net 20%+ in a good year
I'm a big fan of 2x leveraged index funds, specifically SSO and QLD. 3x leverage is too much and is suboptimal.
Bad day to be in SSO calls. Holdinggg
Unless you see a real good deal or a flipping opportunity, youre unlikely to beat market returns by simply acquiring a rental property. Real estate can help scale wealth fast but only if youre willing to use those properties as leverage vehicles, since the collateralized mortgages carry cheaper leverage costs than other types of loans. Best move you could do is be highly risk on with equities, full bore into diversified index funds. Want to take on the cheapest leverage you can buy? You can lever your portfolio with LETFs like SSO. Hedge against crashes with long bond funds like EDV. Fun stuff
Voo or vti are great. Slow and calculating basically garunteed tried and true. If you want crazy things to happen go 80/20 SSO/GLD or 40/40/20 VOO/spxl/gld Or if you want to skyrocket or blow up overnight 33/33/33 spxl/bitcoin/gold https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=2jND3go99MRGrYD3FNOCvo
What I’m doing in my IRA is 40% SSO (2x S&P 500), 30% VOO, 30% cash. I get yield on my cash. That’s effectively 110% S&P 500 + 30% cash. I tune down my volatility by reducing the VOO side. I dropped it from 140% S&P 500 to 110% at the start of this year. I wouldn’t do this in a brokerage account. I only buy & hold in my brokerage, to avoid tax drag.
Best was “to start”. Next best was to commit to being a learner, and understanding the “why” of common advice, rather than taking it as gospel. This has been a very big benefit for me. Example: “don’t look at your portfolio.” Why? Because you’ll do something impulsive. I appreciate the intent, but the message is that ignorance is better than normalizing red and discipline. When I started, I set that aside and logged end of day values for 6 months. It didn’t take long to get acclimated to red days. I held a large SSO (2x S&P 500) position through 2022, rebalancing, staying the course. In week 8 of that 8 straight weeks of red, I was calm. That made me a lot of money.
ACHR, AVGO, NVDA, SMCI, UBER, SPY calls all did well today. After a huge sell off last summer I’ve been more cautious taking gains. Have been building positions in QLD, SSO and GLD and other MAG 7 stocks.
That’s the opposite of how it works… individual stocks move more and SPY moves less because it’s averaging across 500 companies, not 100 (hence the name S&P 500). But regardless, that’s not even what they were talking about because SPY/SPX aren’t leveraged. ETFs like SPUU, SSO, SPYQ, SPXL, UPRO are leveraged ETFs that track the S&P 500
I bought SSO call at open today, green but the spread ate into profit. Holding.
You could stick to 100% VOO and end up just fine, first of all. However you are concentrated into US large caps only, and you’re recommendations for other funds is spot on. Id recommend some small cap for sure. Yes the SP500 has returned about 13% the past 10 years and even higher in the past 4 years, but keep in mind that long-term small caps have outperformed large caps to a tune of about 12% vs 8% annual return. Small caps have lagged large recently and I personally think they will catch back up to long term averages. At the end of the day, the largest companies can only grow so much and small caps are where there’s truly upside on return in the long term and these riskier small companies should be returning more. Also agree some international exposure is warranted, in January 2025 the US SP500 was outperformed by most other developed capital markets particularly the EU. Similar story to small caps where these have lagged the past 4-5 years but it’s good diversification to have especially with how high valuations are on US stocks right now (Market Shiller P/E is around 37-38 still, Dotcom bubble started at 41). Dividends arent a bad idea, but you’re young enough to skip them, I still personally do about 5% in schd (Im 28). Tech funds like QQQ will give you more risk and is good diversification, same with bitcoin as an inflation hedge. The one thing you never mentioned are leveraged funds. Now, personally Im not buying these at today’s prices (too high for me), but you can sprinkle in some $SSO (2x SP500) or TEXL (3x tech fund) to crank up your risk and return if desired. If you’re unfamiliar with leveraged funds, they are funds created to return some multiple of daily returns. So SSO for example will return about +2% on a day the SP500 is up 1%, but also same to the downside. When the market is way down (for me this was Spring 2020 and Fall 2022, I load into these by replacing about 40% of my regular SP500 allocation with the 2x. Finally - I think not doing like 5% bitcoin is a mistake. Id suggest this simple etf portfolio, this is similar to mine without individual stocks that I also do: 45% VOO SP500 20% AVUV or IJR Small Caps 15% VXUS or IXUS Broad International exposure 5% EMG Emerging Markets 5% QQQ or similar 1x growth tech fund 5% SCHD Dividends growth 5% Bitcoin Why I have the right to suggest this to you: Was a finance major, work in finance, advise for friends and family, and my 124% 5 year return is beating the 99% 5 year SP500 return currently using a similar strategy! (I did invest in NVIDIA in 2021, that’s mostly why Im outperforming though…). Happy investing! *This is not financial advice*
There's time to make it back. Not in options. You have no business doing that. We're going into a trade war. Amass as much cash as you can. Buy SSO on the way up.
Thanks :). I have some cash. If this drops tomorrow maybe I can recover something buying the dip and investing in the SSO.
do i buy puts on SPXW, 1x SPY (SPY), 2x SPY (SSO), or 3X SPY (UPRO) 
40% SSO (2x S&P 500), 30% VOO, 30% cash. I’ve held the 40% SSO position for 3 years (since late Jan, 2022). I tune leverage by adjusting around it. This is in an IRA, so there’s no drag.
I’ve been long SSO (2x S&P 500) for 3 years. I knew what to expect in 2022, planned for rebalancing to aim at outperforming on the recovery, and have significantly outperformed the index over that period. This is despite increased rates -> increased cost of leverage, and a historically bad path through 2022 for LETF purposes, including 8 consecutive weeks of red. Vol decay is important to understand, but easy to plan around. Rebalancing strategies in tax advantaged accounts are excellent to explore if you’re considering these. Psychology is the demon people don’t fear enough. A lot of “long term” holders sold at lows in 2022, incurring large losses. Those of us who held, did very well. Everybody thinks they’ll be one of those who hold. Few do. Be honest with yourself about whether or not you want to stick to the plan when you’re deep in the red, with no near term hope.
 I’m going to do SSO because I have no balls but right idea
"Oops! DeepSeek is experiencing high traffic at the moment. Please check back in a little while." Not even saying some weird responses mixing SSO(etf) with SSO(Seguridad y salud ocupacional - spanish)
If there’s a massive market crash I’m taking out the biggest margin loan I can and buying 2x S&P500 SSO
Going full 2x S&P500 via SSO see you later CHUMPS
I’ve been long SSO (2x daily S&P 500 leveraged ETF) for 3 years, use covered calls a lot, have bought calls a few times, make rare use of buying puts, and use cash secured puts. All of this has gone very well for me. I’ve outperformed the market over the past few years that I’ve been actively managing accounts. Here is a piece of important advice: when you get involved in an asset or tool type, commit to learning. Specifically, start with the question, “what are the risks?” Not at the level of, “the risk is losing money”. What I mean is, learn the mechanisms through which people get fucked with that asset or tool. Learn how it works when people get destroyed. Pay very close attention to that. Never lose sight of it. Make sure you can answer the question, “when people get destroyed by these, how does it happen?” Don’t do the things that get you destroyed. Also advice: before you put a position on, always understand how you constructed the idea to do so. Get good at talking yourself out of things. Evaluate the quality of your decision making, regularly.
People say you shouldn’t hold the leveraged ETFs but back when I was looking into this some years ago there was research showing that 2x ETFs were supposedly mostly safe to hold over a long period in many different market conditions. I’ve held SSO for many years but most of those years have been positive so my example is just anecdotal. When the market dropped I’d move more SPY into SSO, which worked really well but in some ways that’s men trying to time the market.
some of y’all would’ve been better off just buying QLD, SSO and forgetting about it this past year
Mostly because people don’t think of it being used in moderation. All in UPRO is too much. Even all in SSO. But hit like 1.2-1.5x leverage, that can be good when the risk is right.
My 401(k) is in a TDF. I contribute well above match in that account. My brokerage account is passive indexing (mostly VTI, a little SSO). My IRA is where I’m most active. I maintain 40% SSO (2x daily S&P 500). The other 60% defaults to VOO. When I see a swing trade opportunity, I move capital from VOO to do that. I rebalance on 1% allocation drift, and when I exit trades.
I like your aggressive approach. Also, there are folks who outperform simply by holding 20% to 40% of their account in a 2X (NOT a 3X) bullish index etf such as SSO or QLD. Those 2X etfs do not decay much. Just take a glance at a 10-year or even 20-year monthly chart and look at the performance.
100% is maximally aggressive. Anything other than VT is a tilt, which unless its to the risk premia (small caps, profitability, value, investment) is an uncompensated risk. If you truly want more aggression, you have to find a cheap way to add leverage to your portfolio. Easiest way for cheapest retail leverage is using an LETF since they get institutional borrowing rates at the Libor + counterparty spread rate. For example, take a diverisfied portfolio, stocks and bonds, lever it up. Maybe shift the bonds to long duration like GOVZ, add US beta exposure with SSO (2x spy) or UPRO (3x SPY) and rebalance regularly, at least yearly, but far better quarterly or shorter. This is to minimize the LETF from growing too large in a bull market, causing it to overweight in your portfolio, which substantially exposes you to a co-occurence of large UPRO in your portfolio with a black swan. A bad red week and Upro can drop a *lot*
UPRO if full regard. SSO if half regard
I've been holding 2x and 3x funds (SSO, QLD, SPXL, TQQQ) in my account for 3 years. Watching TQQQ go from $91 to $16 was brutal. I've charted my progress. My overall return is now higher had I invested only in VOO instead of leveraged ETFs. Most of the time VOO would have been a better DCA investment. Actually all of the time except for the past 2 months. But I'm going to stay in LETFs for a while. Staying the DCA course with LETFs without waiver isn't just hard. It's impossible.
It’s important to understand that if you use a 3x ETF and over a period of time the underlying goes up 5% your ETF won’t be up 15%. They work on a daily basis and over time decay. During covid I moved a good percent of my SPY to SSO and I’m still holding it.
Probably some BBLU, SPBC, XDTE & RDTE. BBLU is a cheap blue-chip ETF with good holdings for $13.50 per share. SPBC combines 80% or so S&P500 exposure with Bitcoin (20%) in one fund. XDTE & RDTE pay weekly dividends with a relatively stable NAV that has recovered. YMAX & YMAG also pay weekly dividends that are higher than XDTE/RDTE but more riskier. If you believe the stock-market will be bullish, there are leveraged ETFs such as SSO, TQQQ or SPYU but they are more risky due to market downturn but can amplify returns during a bull market.
You can use Google SSO to login. Making an account is like clicking 3 buttons.
Feedback below, overall this allocation is solid. - Not sure about their expense ratios, but you could probably roll up the 3 large cap funds into just a simple SP500 index with a lower expense ratio overall. Expense ratios are big for long term compounding ability. Perhaps leaving the growth on it’s own is fine if you want a little more risk/return. - If you are a value investor who values limiting downsides, dividend funds are great, you get a 4-5% floor delivered as cash dividends annually. SCHD is an example of a good Dividend growth ETF. Id consider 5-10% here. - This is mostly my own opinion, but I do 20% on small cap, Id recommend bumping that to 15%. I personally believe small caps lagging large caps so much makes no sense (Compare SP500 to Russell 2000 or 3000 over 5 or 10 years). Part of this imo has to do with automatic deposits from things like 401k into mostly large cap funds, but large caps can only grow their earnings so much imo (Google, Apple, etc kinda proving me wrong still lol) - You are already ultra diversified sector-wise here, I dont know if you need 5% in healthcare. I work in healthcare finance and I can also say there are plenty of emerging industry risks that may make this sector less defensive than previously, Id take this 5% and put it into a dividend etf for defensive instead that I mentioned. - China allocation is okay vs other international, invest in countries investing in their own economies a lot, 5% is good to me. - 5% cash position is good, I would set some rules for yourself on when its okay to deploy this capital into equities or you might build up too much cash. For example I will deploy 20% of this everytime the SP500 drops 5% in a week or something. Or you can allocate part of this to a “my own ideas” portion that you allow yourself to buy 1% total allocations in your 3-5 favorite individual stocks, this makes investing a little more fun too, but up to you. - If you are under age 45 (Im assuming so), you dont need bonds, you have plenty of time to ride out equity waves. Dividend equity ETFs are a better alternative when you are young that still provide a fairly stable cash income as well. Most bonds are purchased by corporations who have risk limits that dont allow them to buy equities a lot (insurance for example) or very old retired people. - Finally, consider leveraged etfs to crank your risk up. Id you are DCAing for decades, you can ride out the downside for the better long term upside. SSO is a 2x leveraged SP500 index fund that I use, in the long run these will return close to 2x the SP500 (1.8-1.9x in reality due to the expenses of creating these portfolios with options in the background by fund manager).
Maybe just buy leveraged etfs with a small portion of your portfolio to achieve a similar effect without the loan. SSO is 2x S&P500. UPRO is 3x.
SSO (2x SPY) should be the core position for every young investor. You are basically guaranteed to outperform SPY 90% of the time.
I’ve been thinking about adding $SSO but haven’t yet
Starting an LETF position at the beginning of 2022 would be the worst recent time to do so, particularly with a lump sum. That year, cost of leverage increased, there were 8 straight weeks of decline at one point, and it was a year with extended decline in general. I moved my IRA to 40% SSO, 60% VOO in late Jan, 2022. There’s some mud in the water due to swing trade activity (I pull capital from the VOO side when I see compelling opportunities), so the returns aren’t entirely due to SSO, but I’m meaningfully beating the S&P 500 over that span, despite giving the index a running head start. Understanding vol decay allows you to plan for it. I’ve found that rebalancing strategy in a tax advantaged account has served me well. It basically functions as a “buy low/sell high” strategy, without guesswork.
my (more) conservative plan for my new account: 50% in SSO, 30% in nvdy, rolling into cony monthly. the rest: short both OTM puts and calls pre-earning.
compare spy leaps 500 calls and SSO?
Years of WSB shenanigans fucked my risk tolerance to the point that UPRO and SSO have basically become my buy and hold index funds. Tbf it's worked, probably won't some day but we'll cross that bridge when we come to it lol
My mix in a tax advantaged account would likely be some blend of light leverage on the S&P500 (like SSO), US small cap value with AVUV, international diversification, a ~20% allocation to long US treasury bonds (hedges equity crash), and maybe a 20-30% allocation to managed futures trend ETFs like KMLM and CTA. This portfolio would be rebalanced regularly. Stocks, MF and Long Ts has made for solid performing portfolios that have rather small drawdowns and great looking performance. For example, over the last 32 years, something simple and US centric like 50/30/20 SPY/KMLM/ZROZ (S&P, managed futures trend, long treasuries) had a CAGR of 10.27%, max drawdown of -20.66%, and a sharpe of 0.82 compared to simple SPY which had a CAGR of 10.55%, max drawdown of -55%, and a sharpe of 0.5. You can ratchet that up, shave 10% off SPY and then add 10% UPRO, total leverage 1.2x, CAGR of 11.54%, max drawdown of -30%.
I rebalance to my default allocation of 40% SSO (2x daily S&P 500)/60% VOO. They both track the same index. Rebalancing here is buy low/sell high, without guess work.
I actually have a leveraged golden butterfly portfolio, with which I employ this exact strategy. I use less leverage however and hold cash for rebalancing. Mine is: 20% SSO 20% AVUV 20% UBT 20% UGL 20% BOXX I Rebalance on bands as soon as any allocation goes 10% out of its ideal allocation. Has done very well the past 3 years. We will see what happens the next 3.
Portfolio 2, remove BND, replace with something like EDV, GOVZ, ZROZ, something like that (long treasury bond). Historically for the last 6 decades of data, holding a sliver of the portfolio in long treasury bonds (and rebalancing annually) beats the market on all bases. Better total return, risk adjusted, lower vol, lower max drawdown. 10-30% inclusion. If youre like me and dont want to be less than 100% equities, then simply subtract 10% from VTI and buy something like SSO or UPRO (leveraged S&P exposure). For example, 73/7/10/10 VTI/UPRO/VXUS/GOVZ gives you 104% equity exposure and 10% long treasury bond exposure. Many such combinations are possible here.
Individual stocks can be shaky long term. I hold SSO as my long term. Most will tell you SPY or VOO but I am more risk tolerant. I also swing trade TQQQ and UPRO.