Hello everyone, I need some help understanding.....I'm quite new and don't yet understand where the greater "risk" comes from. Do you also run it with a savings plan, or only 1x purchases and then constantly under observation? Or with a "stop" and automatic sale? Or how? Actually, I've only read about ETFs and seen the very good returns.....
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@Cato_Bamboo The double leverage means that if the MSCI USA makes +2% in one day, this ETF makes +4%. At -3% then -6%. In a bear market, this ETF consequently falls more sharply and takes longer to return to its old high. It therefore has a higher risk, but also higher chances of greater returns in a bull market.
Incidentally, I invest in it regularly, unlike $QQQ3, where I only bought once and see how things develop.
Incidentally, I invest in it regularly, unlike $QQQ3, where I only bought once and see how things develop.
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@Chandra Thanks for the great clarification. But then your variant is associated with even more risk, or just opportunities.....?
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@Cato_Bamboo Everyone has a different perception of risk. Some people buy a share, sell it in a panic at -5% and never touch "the devil's stuff" again.
I started on the stock market at the beginning of 2022 and my portfolio was only in the red for 1.5 years. I'm more hardened than that.
The MSCI USA contains over 500 stocks, only from the USA, but they have performed well historically and I find a double leverage tolerable, so I have it in my savings plan.
The $QQQ3 leverages the Nasdaq 100 (i.e. only 100 stocks) threefold. In the dot-com bubble, the ETF would have meant a total loss if it had already existed. It has performed very well over the last 10 years because the Nasdaq has done so well. I am quite prepared to put in €1000 and see where it is in 10 years' time. 1000€ less won't make me poor (unlike perhaps the loss of a savings plan sum over many years), but €100,000 would already be a noticeable positive.
However, if I have the feeling that the wind is changing in the market, then I have no problem selling the ETFs again. They only make up part of my portfolio, the majority is in $VWRL.
I started on the stock market at the beginning of 2022 and my portfolio was only in the red for 1.5 years. I'm more hardened than that.
The MSCI USA contains over 500 stocks, only from the USA, but they have performed well historically and I find a double leverage tolerable, so I have it in my savings plan.
The $QQQ3 leverages the Nasdaq 100 (i.e. only 100 stocks) threefold. In the dot-com bubble, the ETF would have meant a total loss if it had already existed. It has performed very well over the last 10 years because the Nasdaq has done so well. I am quite prepared to put in €1000 and see where it is in 10 years' time. 1000€ less won't make me poor (unlike perhaps the loss of a savings plan sum over many years), but €100,000 would already be a noticeable positive.
However, if I have the feeling that the wind is changing in the market, then I have no problem selling the ETFs again. They only make up part of my portfolio, the majority is in $VWRL.
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