UPRO

Visible-Mastodon-277

Sold some TQQQ/UPRO. too much risk

AICHEngineer

Take on some leverage and hedge the drawdowns using alternate diversifiers. UPRO, GDE, RSST, GOVZ, plus something international.

Financial_Form_1312

If you want to be super aggressive, buy TQQQ and UPRO exclusively from now until you’re 30-35, then start diversifying.

PanhandleChuck1

Say no to UPRO

Then_North_6347

Sell and buy SPLG or UPRO.

musicandarts

Typically, the breakeven happens about 8% below. So, your estimate is correct. I have a much larger position on 3x leveraged S&P (UPRO). I will hold it at least until the mid term elections.

DesignerSea494

I threw 500k into UPRO recently. I was so happy about my decision, then I saw all the regards getting rich overnight on OPEN. Am I a Boomer now?

Apprehensive-Mix4473

I threw 500k into UPRO recently. I was so happy about my decision, then I saw all the regards getting rich overnight on OPEN. Am I a Boomer now?

DesignerSea494

I’m not full-porting UPRO, it’s just a sizable position.

DesignerSea494

Fuck this. I’m down 200k in a month on speculation. I’m moving 500k into UPRO in the morning. The administration wants the broad market to rise, at any cost.

Fun-Sundae4060

TQQQ and QLD UPRO and SSO ZROZ, EDV GLD and lower ER variants CTA, KMLM, and DBMF

NoFootball6808

I started investing in TQQQ and UPRO about 3 years ago. Recently sold most of TQQQ and moved that money to QQQ. What I realized is that, those leveraged ETFs are good when index already bitten down 10-15-20% vs investing at ATH. Whenever market going down, these levergaed ETF would lose alot more. Not sure I am explaining it correctly but TQQQ and QQQ doesn't go proportionally in long term.

AICHEngineer

In one day isnt even the problem. There are bona fide simulations of LETFs out there including all the costs and daily rebalance. In the GFC you drop from peak to trough -95.6% using UPRO in nominal terms. It takes over two years for it to happen. All the while youre dropping and dropping. At the lowest point, it takes 23.4x returns to recover from that drawdown, not including inflation. Many such cases.

Iunatic

90% SPY / 10% UPRO would outperform most people here on autopilot.

AlternativeSignal908

Check out this book. It was written in 2010 and is backed by academic research. The main point is that leverage when you're young may be appropriate and may actually reduce risk since it provides more diversification across time. # Lifecycle Investing: A New, Safe, and Audacious Way to Improve the Performance of Your Retirement Portfolio Ian Ayres and Barry Nalebuff In my experience, nakedly investing in leveraged index ETFs works until it doesn't. That is, you can have tremendous gains, but then give them all back. You need to have some portion of the portfolio that is a hedge and rebalance a couple times a year. Hedges are long treasuries (ZROZ), gold (GLDM) and potentially managed futures (CTA). Play around with different mixes on testfol.io. Really look closely at the 1970s or 2007/8 and consider your total leverage (amount of UPRO or SPUU) in the mix. It isn't going to be hard to run a leveraged portfolio in times like today. But imagine things going down and staying down for five years or longer. That will happen. It's guaranteed over your investing lifespan. Multiple times. Whatever portfolio you run, you need to believe in it strongly enough by doing the work so that you stick with it when the shit hits the fan. Which it will.

Fun-Sundae4060

Diversified LETFs are for long term holding. Single stock LETFs are for swing trading and shorter term plays. www.testfol.io Check returns versus regular ETFs on SSO, QLD, UPRO against stuff like SPY and QQQ. Bull runs far outpace the volatility decay and sideways losses.

No-Consequence-8768

Not sure why people would be 'Margined called'.? Very few people borrow on their equities. Thats Stupid! If people went 100% on TQQQ/UPRO etc... there is NO margin call.

UncouthMarvin

You'll understand next time UPRO does -75%

jaavaa

Basically the normie version of that, I'm jacking myself to the tits on VOO and UPRO

UncouthMarvin

55/45 UPRO TMF and chill

DitmCalls

Look at the premiums on leveraged ETFs, such as UPRO or TQQQ, substantially lower than SPY and similar behavior. You can buy several contracts for the price of one SPY contract.

jnas_19

The markets ability to climb every wall of worry is incredible, gives me that UPRO itch. Compare that to your average BOFA savings account APY of 0.01% or Treasuries losing money 24/7 and it really hits you.

jnas_19

100% UPRO?

bm211201

TQQQ/SQQQ SPXL/SPXS UPRO/SPXU. Sometimes 2x leveraged individual stock ETFs

Historical-Cost1444

Are UPRO options liquid enough to trade?

JoeBideyBop

I am 35 and know how you feel. I’d like to address you where you are and the interest in risk that you have. Anyone who comes here asking questions like this about options isn’t ready to trade them. If you were a baseball manager would you start a player who is asking you the rules of the game and hour before the first pitch? I doubt it. Yes, it is all very interesting and some people do have the time and money to make it worth their while. You don’t have that, and that’s ok. As others point out you’re hearing selection bias because we tend to give the big winners a lot of upvotes. It gives everyone else hope. The problem with options is you could select the right company at the wrong time and lose a lot of money. My cousin bought PLTR options when the company was trading around $30 a share but it was the wrong time. Those contracts expired before he the company matured and he lost all of that money. He did have shares as well but the options strategies were really heavy and have significantly carved out his returns. On the other side of the coin we had a prospective client who just held Apple stock for 40 years. No options. They were asking us about building a new house with the stock sale. If you’re interested in some leveraged exposure I don’t blame you. A lot of people are. That’s why 3x leveraged index funds exist like UPRO. Let a professional manage these complex leverage strategies for you and then you can have more time to focus on rebuilding your life + professional development. That’s my standard advice to anyone who asks about a risky strategy and you are no exception. We’re in a very similar financial position so I’m not saying this from a place of relative wealth like some others in the thread are.

Djov

Honestly has worked out pretty well for me. I have decent sized positions in UPRO and SSO that I've just let run for years (which is advised by almost nobody, including the products themselves lol) but my UPRO position is up like 100% in a time frame where VOO is up around 35ish so I can't complain. I'm sure I'll get humbled someday by UPRO, less so by SSO but it's survived COVID, the inflation concerns after, and the tarriff shitshow just fine so im just letting it run

weasler7

I tried a 3x leveraged portfolio with UPRO, TQQQ, and both TMF and BTAL as hedges based on several popular back tests. TMF got destroyed in 2022 as long duration bonds got fucked as the fed was raising rates. It never functioned well enough as a hedge (and I don’t think will in the future either). BTAL actually worked well. Glad it was in the portfolio. Backtests were skewed due to long periods of slow grind up post GFC. In fact, it’s the same period when the short vol trade (XIV) was very popular. I think it could work, but you have to have immense risk tolerance. I did not- deleveraged in Jan/Feb and just went into non leveraged indexes.

Good_Ride_2508

Both are not good for investing (buy,dca and hold) for long term due to volatility drag/decay and contango [https://www.reddit.com/r/TQQQ/comments/vnhoin/how\_does\_volatility\_drag\_apply\_to\_tqqq/](https://www.reddit.com/r/TQQQ/comments/vnhoin/how_does_volatility_drag_apply_to_tqqq/) They are only good for trading and short term play, but timing must be correct. You can day trade or swing trade with such 3x etfs. The 3x etfs like TQQQ or UPRO won't dissolve as they follow indexes, but every recession funds dissolve 3x ETFs at an inopportune time. Ai search gives: 3x leveraged ETFs face a high closure rate due to inherent risks like volatility drag and potential mandatory redemptions. The regulatory environment is also becoming more restrictive, further impacting the viability of these products. Therefore, investors should exercise extreme caution when considering 3x ETFs and are generally advised against using them for long-term investing. 

TJN39

Would I be stupid to enter the market now on the crazy run we are having? I’m holding SQQQ right now and it’s approaching my stop loss. It seems the bull is too strong to overcome but going in at an ATH is always daunting. Planning to run an aggressive growth mix for long term holding (20 years before any major withdrawals) UPRO - 40% VT - 30 ZROZ - 15% GLD - 15%

Historical-Cost1444

If we ever get like a legit 20+% correction again, I’m just dumping into UPRO and fucking off.

Fun-Sundae4060

I trade so I’ve only held this position for like 2-3 months. I would not leverage crypto to hold long term, just for general movement during a bull run. Stuff like QLD TQQQ SSO and UPRO are much better long term holds due to less volatility

NUSWannabeSWE

Until late August Anyways I did a DD a year ago but had to take it down If you buy UPRO and skip September every year you would be up 9x more than having September invested

Quatr0

it probably works but it ended up being too slow for me. I use a 21 ema, vwap and pivot point strategy now and buy on strength 3 day out atm call spreads $2 apart, and for days i can day trade when vix is under 20 ill buy naked 0dte calls into stregth. UPRO is awesome for runs and put debit spreads appropriately cover it so you cycle those 3 days out atm, $2 width and come out on top if you time it around reaction to the daily pivot levels. dm me for more but i just got bored waiting on this strat

InvisibleEar

I should have 100% UPRO after Iran was a nothingburger

SnackyMcGeeeeeeeee

Damn, put half my portfolio in shorting UPRO on Friday lol Surely market can't go up 5 days in a row without a dip 😩

Fun-Sundae4060

People love the simplest strategies because it’s the most popular as well and performs quite well. Anything that isn’t the “VOO and forget” advice usually just gets downvoted. Heck I’m downvoted for even suggesting LETFs like TQQQ or UPRO which are pretty mild in terms of leverage risk.

bbreadthis

I feel your pain. I kept buying the dips and ended up with several thousand shares. I had a deposit on a Sapphire for over a year, but ended up so far in the hole I had to cancel that plan. I tried to sell covered calls to recover anything but these were trivial as the stock continued to tank. Remember how the CEO lied about early production numbers? Remember how they said the Saudi fund was going to buy a gazillion shares and that would prop the price up? Well they just created more shares from nothing and pocketed the cash, thereby diluting the value for those holding during this process. That was the last straw for me. I got out at $5ish. Lost a shit-ton. It took me years to get my account to recover from it. A reverse split is a lame attempt to keep the shares above $5 and preserve a NASDAQ listing. It does not create any shareholder value. That management wasted so much great IP. My only advice is to create an exit strategy. Time your loss sales to maximize your tax offset. I did the best I could, but still have 50 years of write-offs at $3k each year. Thanks IRS. What did you learn? I am much heavier into TQQQ, QQQ, UPRO so as to avoid the deceit traps from being invested heavily in one company. Best of luck.

AICHEngineer

UPRO +30% from here minimum

WSBshepherd

I wouldn’t be surprised if UPRO traded on SPY crosses outperformed SPY (with less volatility), because momentum investing has been shown to create alpha.

WSBshepherd

I wouldn’t be surprised if UPRO traded on (with less volatility), because momentum investing has been shown to create alpha.

WSBshepherd

Try UPRO with the same exact buy/sell dates as above.

Fun-Sundae4060

The key is leverage on a positive expected return asset. SSO or UPRO are LETFs that leverage the return of VOO. You don’t lose the benefit of diversification this way but increase returns similarly to concentration without adding on the idiosyncratic risk. I used to be extremely heavily concentrated. 6 years of holding 100% TSLA. But now I believe leverage is much smarter and less risky.

trackday

Up until christmas roughly, I made 20% return over about 15 years. General SPY investing but with a leveraged ETF version also, UPRO. Two big hits - TSLA and NVDA. Both multiplied my investments in them by 5+ times. Did some buying at the dips, selling at very high return peaks. Missed trumps first term because it made no sense to me. Also sitting out this term somewhat, makes no sense. Burn the country to the ground and stocks keep going up? It doesn't compute.

LeveragedMomentum

I use a mix of four strategies which I call FANGEtc Momentum (50% of portfolio), Leveraged Crosses (16% of portfolio), FNGU Trends (17% of portfolio), and Leveraged Index (17% of portfolio). FANGEtc Momentum invests in mega-cap stocks based on momentum. Leveraged Crosses invests in UPRO (or in TMF during extremely volatile periods such as the Liberation Day volatility which I consider to be black swan events). Leveraged Index invests in a mix of UPRO, TMV, EURL, and TMF with the proportions based on recent performance. FNGU Trends invests in FNGU (or in TMF during black swan events). I backtested trailing stop loss orders of each whole percent for this FNGU Trends strategy and settled on 52% to avoid catastrophic losses. When a stop loss order is triggered then I wait until FNGU opens back above its 120-day MA (selected after backtesting various options). I sell again if price drops below original stop loss level minus another 3%, buy again when it rises above the MA again, and reset the trailing stop loss floor when a new ATH is reached. My objective in using a high percentage trailing stop loss order on FNGU Trends is to sell while the LETF is dropping during a bear market. If the bear market continues then the MA will follow the price down over several days or weeks so when the bear market ends and the LETF starts to rise again the MA buy price will be substantially below the stop price at which the LETF was sold. Losing 50%+ is painful but not nearly as painful as losing 90% or more. Avoiding that additional 30%+ loss and getting back in for another climb make sense to me. Leveraged Index and Leveraged Crosses do not use stop loss orders. Leveraged Index rebalances into new positions based on recent performance (momentum). Leveraged Crosses moves in and out of UPRO in response to indicators based on moving averages and moves into TMF during black swan events. My goal is maximum long term CAGR so I tolerate losing 50%+ every few years to earn CAGR over 40% in the other years. I have earned 10-year CAGR of over 20% but the first few years were nerve-racking! I've sent a free newsletter sharing the details since 2015. *Always backtest simple rules for when you buy and when you sell before investing. Backtests should deliver strong results for at least 15 years and for each of the last three 5 year periods.*

Fun-Sundae4060

Was in a similar boat as you when I was 18. A lot of people disagree with my investing philosophy but I believe when you are young and have a small account relative to your income, you can afford to take significant risk (but not to the level of being a degenerate). This means using leverage on things like VOO in the form of LETFs such as SSO or UPRO and hedging properly with gold, managed futures, and bonds. Small account fluctuation can easily be managed psychologically since your income is large relative to account size. If you make $100k, a drawdown of 30% on a $60k account is a nothingburger. But a 30% drawdown on an account of $600k is much more psychologically taxing.

Fun-Sundae4060

A couple of reasons: 1. Ability to rebalance between correlated assets during underperformance of one into the other. 2. Increased Sharpe ratio and increased returns. 100% equities does not actually always outperform a portfolio that has an asset mix of something like 90/10 equities to bonds because it is able to rebalance regularly unlike the single asset portfolio. 3. Lesser drawdowns and steadier growth. You can actually leverage up SP500 with UPRO and MASSIVELY outperform VOO by an enormous margin, far beyond 3x. However the psychological pressure during major downturns and drawdowns can cause investors to break.

Not-The-Dark-Lord-7

Lots of people will mention leverage decay, but consider that regular ETFs are also already leveraged, just at a leverage of 1. There’s no reason to assume that 1 is the optimal leverage for every index. Also fees are mostly a non-issue when compared to the far greater returns. If you choose an underlying index that’s relatively stable and not super volatile, like the S&P 500, leverages of 2 or even 3 can make sense. Check out tickers like SSO (2x) and SPXL (or UPRO) for 3x. Buying and holding leveraged ETFs is generally not advised (although, if you check out those tickers, you’d be up a lot more if you DCA in over the same period as with the underlying index). However, there are some legitimate investment strategies that involve using volatility indicators for the underlying index to know when to liquidate your position, to avoid getting caught in a massive crash (which would be amplified with the leverage). You can look up simple strategies like a 200 SMA strategy. I would say the S&P 500 is one of the only indexes stable enough to support a leverage level of 3, so going with a leverage level of 2 like in SSO is pretty safe for long term holding. As for how they work, most of the LETFs rebalance daily to achieve the desired leverage level. So, if the index moves up 2% in a day, the LETF aims to move up x\*2%, where x is the leverage of the LETF. The daily rebalancing is important to note, because large market moves are usually spread out across many days, so moving down 50% in 5 days won’t completely ruin a 2x LETF, because of the daily rebalancing. Doing so in 1 day would ruin the LETF, but with circuit breakers this is virtually impossible to happen. Hopefully this answers some of your questions, for more information you can check out r/LETFs . IMO the best way to use LETFs is long term holding or a 200 SMA strategy, I would not reccomend trading them.

Redfield11

Another good example is any of these SOXL/UPRO/SSO/TQQQ, the market has been doing really well and S&P 500 breaking records but due to the crash in April while the market is hitting all time highs the 3x leverages ETF's still haven't gotten completely back to their 2025 highs.

SnackyMcGeeeeeeeee

1c price change = $200 profit. Lil bit of pattern trading failure, usually stick to UPRO or APPU

Historical-Egg3243

a high momentum stock can get you the same returns without the somewhat unpredictable downside of UPRO. Sure in the past it has worked out, but you don't know that it always will, due to the complexities of daily rebalancing. I've seen in backtested 100 years back and it underperforms SPY.

Affectionate-Aide422

By assuming 3664 trading days (14.54 years * 252 trading days per year) we get the following daily growth rates: • SPY: 0.0423% per trading day • UPRO: 0.0942% per trading day These daily rates compound to 11.26% annualized return for SPY and 26.78% for UPRO. UPRO’s higher daily growth rate reflects its 3x leverage, though it achieved more than 3x the return of SPY over this period due to in a generally rising market.​​​​​​​​​​​​​​​​ TQQQ did far better. In practice, daily rebalancing hasn’t been much of a problem.

Affectionate-Aide422

Daily rebalances move it off the 3x leverage. To get a better feel for the gains, UPRO was at 3.03 on Jan 1, 2011 and is 95.46 today (31.5x) and SPY was at 133.15 on 1/1/2011 and is 628.04 today (4.72x).

GeorgeWashinghton

Damn, UPRO only up 6,390% long term

Soysauceonrice

You definitely can hold UPRO long term. I wouldn't do it with a large chunk of my portfolio, but just comparing their ATH is a pretty shallow analysis. 10 year CAGR of UPRO is around 23%. 10 year CAGR of the SPY is around 13%. If you bought UPRO at its inception in 2009 and just held it till today, you would have been up 7,800%. The SPY isn't coming close to that.

Soysauceonrice

Nothing you've described here is really that surprising or unique. You stated it yourself -- decay happens even if you aren't leveraged, but it gets magnified by the leverage, which is expected. On the flip side, you should also look at what happens when there is momentum, either in an upwards or downwards direction. If your $100 goes up 10% on day 1, the 3x leverage puts you at $130. If it goes up 10% again on day 2, the 3x leverage puts you at 169. When you have consecutive days of positive gains, the leverage also magnifies the compounded returns. So, yes, when the market is sideways, the decay on a leveraged ETF can kill you. But this leads some to erroneously conclude that this MUST mean that leverage ETFs will eventually go to zero due to the decay. That's not true because 1) you're ignoring the magnified gains that occur on consecutive green days, and also based on reality, and 2) UPRO has been around for 16 years -- if it was destined to go to zero due to leverage, it would have done it by now.

littlered1984

Triple leverage FAANG? That is objectively more risky than UPRO.

LMTDDragon

Put simply: SPY is currently at an all time high. UPRO is ~5% short of its ATH. When SPY dropped 17% in March, UPRO dropped nearly 50%. Imagine a bigger drop. UPRO is great when the market is going up, but you can’t hold it long term because of the drops.

jeon19

With the current SP500 circuit breakers with the LETF that OP mentioned, UPRO, this would not really realistically happen.

jeon19

If you can stomach the drawdowns and add more when it's down, it can actually be very lucrative. If you compare to the index when the index is at all time high and look at long time frames (5,10+ years), you'll see that UPRO can sometimes come out ahead by quite a large margin. However during a downtrend your unrealized loss will be magnified.

User1542x

UPRO / TQQQ weekly CSP ATM. If you get assigned, sell CC. Basically wheel it. Try it with 100 shares.

shr00mer_69

Once this all crashes I’m going to go UPRO and chill like a true degenerate

Quakinator

Man, I ran across this searching for TNA threads…if anyone went in on this TQQQ, TMF, UPRO rebalancing portfolio they got smoked. -70% Jan ‘22 to Dec ‘22 and still has not recovered even though the 15 year backtested annual return is still 19% due to the pre 2022 gains. Since 2022 it has basically gotten you the same as 500 index fund returns with a lot more risk.

456M

Sold off the last of my UPRO shares at $95 earleir today. Pretty much made 100% gains on those since I bought em in 3 months ago. Buying more small cap value here.

Redfield11

Sorry to the guy who was assigned my UPRO shares after Thursday night *(sorry to me for my SOXL double down, still waiting on those AI executive orders Reuters teased)*

LongevitySpinach

You're not looking for a leveraged ETF, but maybe UPRO?

WallStreetMarc

I researched on leverage ETF that beats its counterpart historically. TQQQ, TECL, UPRO and SPXL are the ones I trade. TQQQ is great to sell puts at different expiration and strike prices. I close out most of my trades when RSI is high. I also buy the shares and sell covered calls. With TQQQ I don’t have to worry about earnings or company’s event. Out of all the leverage ETFs, TQQQ is the most liquid.

ranting_chef

I bought some TQQQ at the end of 2018. Not a ton, but enough that I wouldn’t have lost my ass if it tanked. Maybe 5% of my portfolio at the time. At one point around the end of 2021, it was over 800%. Then it plummeted and it was almost break even. Now it’s back up over 600%. I always sell some when it becomes too much of a percentage of the portfolio, but if you’re young and don’t need the money right away, it seems like a good one to hold. Same with UPRO.

Fun-Sundae4060

You can just track the general stock market indices but use LETFs for leverage to suit your outsized risk appetite. This way you’re not taking on any extra uncompensated or idiosyncratic risk, but you are increasing market exposure beyond 100% equities and gaining extra risk/reward on that. For VTI, you could just do SSO (2x) or UPRO (3x). This can remove your need for satellite positions. When I was 18 I went all-in on TSLA. Not the “smartest” financial move but panned out INCREDIBLY well. The difference between what I did and what I’m suggesting is that I used a concentrated bet whereas the strategy above uses leverage on something that’s diversified.

Embarrassed_Eggz

Been DCAing into UPRO for a couple months now (I know, I know buying shares instead of options is heresy around here lol) but just tried to do my weekly buy and it says I have to buy whole shares. Anyone know what is going on? Is this a change the fund made or just my brokerage (Robinhood)? Anyone know what's going on?

Fun-Sundae4060

VOO VT QQQM and SCHD basically all overlap with each other. You can condense into just VOO pretty much or QQQM for NASDAQ. Diversify into multiple asset classes such as gold, long dated US bonds, and managed futures. They should be a small percent of the portfolio. If your equity exposure is too low for your risk appetite you can use LETFs such as SSO/QLD (2x) or even UPRO/TQQQ (3x)

gigastonksmedia

I'd say the general consensus here is that VOO/SPY or an equivalent that tracks global as well as USA is the best bet; you can also go higher risk (TQQQ, UPRO) or lower risk (mix in some bonds) and expect comparable returns (although compounding over 30-40 years there's a huge difference between 6 and 8 percent).

solariac

90% VOO / 10% UPRO would outperform most regards on reddit with no effort

456M

Sold the last of my UPRO lots I bought back in April [here](https://www.reddit.com/r/stocks/comments/1jv1nh0/rstocks_daily_discussion_wednesday_apr_09_2025/mm95nt1/) and [here](https://www.reddit.com/r/stocks/comments/1jvtsn5/rstocks_daily_discussion_options_trading_thursday/mmewnht/). Thank you to whoever was freaking out and selling at the bottom. Let's do this again sometime.

UnKossef

I ran that strategy through portfolio visualizer, 60% UPRO, 40% TMF rebalanced quarterly from 2019 to today. An interesting quote from the post: >**What are the risks of your strategy?** The main risk is that the S&P 500 and long Treasuries crash together in the same short period of time. In the past 30 years this has not happened, and I can't think of a real-world scenario in which this would happen. I acknowledge this risk and move forward having accepted it. Which is exactly what happened in 2022 where it dropped 67% due to long term treasuries dropping along with the S&P for an entire year. That portfolio underperformed the S&P 500 between 2019 and 2025.

zampyx

OP specifically asked about a 3x leveraged ETF of S&P500, that's UPRO. But if you guys want to keep going on a completely pointless conversation be my guests

Fun-Sundae4060

It depends on the movement of SPY. Over multiple green days, the leveraged gain is actually above 3x due to the daily resetting. Over long periods of overall gain, the leverage tremendously boosts returns above what the daily exposure is. For example: 5% gain 3 times in a row on SPY is 15.7%. 3x that would be 47.1%. In reality, on UPRO it would be 15% gain 3 times in a row for 52%. That’s more than the 47.1% without a daily reset. That’s also part of the reason why the “volatility decay” argument doesn’t hold as much water as people make it seem here. It’s balanced out by exponential gains from the daily reset.

FreeEnergy001

Compare UPRO to S&P500 for the last year, it's about even due to the volatility.

FreeEnergy001

Comparing UPRO (3x S&P500) to the index. For the past year they are about even but looking at the 5yr return UPRO is above 3x. So it really does depend on volatility.

SeriousMongoose2290

To answer your top line question on why it’s bad? Because you don’t have the balls to stomach the draw downs. If you can hold, gigantic if there, it can play out. The most I’d recommend holding is something like 1.5x sp500.  But seriously the draw downs on 3x will be enormous on 3x. Like “set you back nearly your entire investment career” big.  Disclaimer: I hold UPRO lol 

zampyx

Because they don't know what they're talking about. There are no interest rates on UPRO ffs, it's synthetic you don't borrow to get leverage

namewithoutspaces

How would he lose 100% in something like UPRO?

Newbiewhitekicks

Everyday UPRO resets and begins anew. Losses are realized, without selling. So if the S&P goes from 0 to 3 then UPRO goes from 0 to 9 and then resets. But if the S&P stays flat then the daily resets cause losses… for lack of a better explanation. And if the market goes down then UPRO goes down 3x the amount in to the negative and resets.

markpreston54

well, before you ask why, one can ask if first. 15 years of UPRO, if you can buy and hold, is not bad at all, that said 1. if you really want the leverage, using futures might be cheaper in execution cost, and avoid the volatile change of exposure. 2. Think about the times you may want to spend the money, it might be the time of crisis wherr upro underperforms greatly

Friendly_Scale_7239

I don’t. I just look at UPRO chart since inception and seems like a no brainer

Shop-Rat

They mean leveraged etfs such as UPRO.

Competitive_Ride

Thinking of selling gold to buy UPRO

helpwithsong2024

Change UPRO to VOO and you got it. How old are you? 40% EDV seems very conservative.

Mission_Adagio4566

At heart I'm a boglehead who wants to set and forget, but also generally believe a bit of leverage can go a long way. 20% UPRO, 40% VXUS, 40% EDV

Mission_Adagio4566

At heart I'm a boglehead who wants to set and forget, but I generally believe a bit of leverage can go a long ways. Does a 20% UPRO, 40% VXUS, 40% EDV portfolio sound insane?

Redfield11

PLTR and other meme stocks didn't really show any reaction haha - I did get some UPRO/SSO though that I'm really hoping doesn't come back to bite me on Monday (e.g. Iran attacks a US base).

Waygzh

I bought $200k of UPRO to hold long. We're gonna be rich or we're going to burn down the fucking world.

SnackyMcGeeeeeeeee

Just bought UPRO after the dip, kinda worried lol

No-Pea-7530

Haven’t down voted anything. And you’re excluding 2 years of UPRO where it was up 10% and then 98%. That’s a 2 year CAGR of 47%. Which is double your yearly average.

Dry-Drink

My 200% cumulative return is on the money I've added to my account. But I didn't add everything all at once 5 years ago. I've contributed throughout the 5 years. Obviously if I had every contribution I made back in 2020 and invested it all, my return would be way way way higher than 200%. OTOH, that link you posted IS the return of SPXL starting in 2020 and ending now. So it does assume a lump-sum. To compare apples to apples, you need to use the PortfolioAnalyst feature in my IBKR account and graph a benchmark. Then it will compare your returns vs having used SPXL as an investment the whole time. SPXL is not available but UPRO is (starts in Nov 2022) and so far I'm beating it. Also why are you downvoting my responses? Are you literally four years old?

Dry-Drink

I am well ahead of SPXL, UPRO, or any such leveraged ETFs.

schnoggly

I might finally get assigned $UPRO on my CSPs

Redfield11

Statistically speaking almost certain someone out there cashed out in Feb, then bought UPRO/Calls/TQQQ April 8th and traded back into normal stock sometime in May/Early June. And I want them to know that I hate them.

slambooy

Just think if you dumped it all in QQQ or SPY at the start of your video you’d be up 25% just from the market. If you dumped it in SSO double that. If TQQQ or UPRO triple. Either of those three options would have been smarter than what? Smh read more 0DTE puts. SMH lol

Andrew878D

You can find leveraged ETF's that are more affordable, TSLL, NVDX, TQQQ, UPRO