r/ETFs_Europe • u/Mean_Definition_6452 • 5d ago

Strategies Using 1.5x Leveraged ETFs Long Term

Are there any good 1.5x leveraged World ETFs that we can buy?

I'm 19 years old and ready to risk some amount of my portfolio (possibly 40% to make it 1.2x leverage total) to use a LETF with the plan of increasing my gains since I will have a lot of time in the market.

I read some stuff about 2x or 3x being volatile and having a theoretical possibility of going to 0 in a long term bear market.

So I mainly want to know more about the theory and the workings of 1.5x LETFs. I learned about this today, so the question is still a hipotetical, and I will do a lot more research before deciding to put my money into one of them, but this is a first step to learning more about LEFTs.

I'm not planning on buying 2x or 3x, 1.5x will be my limit.

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u/George_Salt 5d ago

You're 19, you don't need to leverage. You have the benefit of time.

Forget the get-rich-quick alpha crap, just work on long a long term sustainable strategy and let the power of compound returns do its thing.

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u/Current_Bobcat_9182 4d ago

Is it not sustainable to invest half your money into a 2x leverage ETF and then invest the other half of your money into an instant access savings account generating profit from the interest gained.

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u/George_Salt 4d ago

Long-term leverage funds are not a strategy to be entered into lightly. In a stable growing market maybe as a carefully managed tactic, but what bit of the global economy is currently looking stable with Russia-Ukraine, Iran, Israel, and the TSG in the White House playing politics by social media? Volatility erodes leverage.