So I thought if the sp500 returns on average around 7% a year durign the last 100 years, why not buy a leveraged x3 UPTO ETF and get yourself a nice 20%+ average annual returns right?
Then I started calculating the fees and I realized I need some help.
If I invested 100k in UPRO ETF last year and paid 55$ for each share and after exactly a year it ended up worth 55$ after lots of ups and downs, what would be my loss?
I included the roughly 0.5% management fee which will cost me around 500$ a year.
Then I assume you pay 2% on the x3 loan which 4000$ a year right?
and finally what I have a hard time understanding is the volatility fees which I hope are around 1-2%
So in total if after lots of ups and downs it ended up trading for 55$ I still lost around 8000$ or the volatility fees is much worse than I thought?
Then I started calculating the fees and I realized I need some help.
If I invested 100k in UPRO ETF last year and paid 55$ for each share and after exactly a year it ended up worth 55$ after lots of ups and downs, what would be my loss?
I included the roughly 0.5% management fee which will cost me around 500$ a year.
Then I assume you pay 2% on the x3 loan which 4000$ a year right?
and finally what I have a hard time understanding is the volatility fees which I hope are around 1-2%
So in total if after lots of ups and downs it ended up trading for 55$ I still lost around 8000$ or the volatility fees is much worse than I thought?