Alfred (@Papiertiger) on getquin

3Mon·

Children's custody account - ETF 2x products as a return booster? Your opinion

The normal savings plan for the child runs with classic Ishares MSCI World & EM with 75%/25% allocation.

Next year there will be a grandiose 5€ more child benefit so I'll take out 25€.

I'm now thinking about adding a small yield booster (of course with higher risk + I realize that it is calculated daily and tends to go down a little more with minus movement than with plus).

25€ additional p.m. on : (so pi times thumb 300€ p.a. times ~15 years= 4.500€)

$CL2 (-0.25%) Amumbi 2X MSCI USA Daily (0.5% TER)

$LQQ (+0.77%) Amumbi 2X Nasdaq Daily (0.6% TER)

$DBPG (+1.26%) Xtracker S&P 500 2x Daily (0.6% TER)

or rather boring momentum

$XDEM (+0.53%) MSCI World Momentum (0.25% TER)

SOS incoming

20 Comments

Rmann@Epi

3Mon

Perhaps you should take a closer look at this before deciding on a savings plan for leveraged ETFs rather than watching a Thomas video?
Example: 1. when investing in the 2xQQQ in 2000, it only caught up with the 1xQQQ in 2020. Before that it underperformed. 2. the psychological pressure of a 90% drawdown should not be underestimated! If there is only 1k left of 10k savings for the children, even mom gets nervous. Not selling then puts a strain on you and your relationship.

That's why leveraged ETFs should normally be flanked by a volume-reducing strategy. Otherwise it will backfire. The best way to do this is to read research.

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Tino@parlania

3Mon

Still thinking about it, but prefer the nasdaq x2 or x3 - no risk no fun 😂

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Kevin E.@KevinE

3Mon

Definitely not suitable as a buy and hold. 1.5 leverage perhaps, but no more.

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Enrique@Der_Dividenden_Monteur

3Mon

A leveraged ETF brings you less return in the long term.
These are active products.

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CoinEsel@DonkeyInvestor

3Mon

Is it even allowed to leverage in the children's portfolio? I would be fine with momentum

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Tim@Stratege_Tim

3Mon

The question is also what you see this new ETf as: as the only product or as a supplement to an MSCI World? If as a stand-alone product, then rather the leveraged MSCI USA, if as a supplement, then sometimes also in combination with the leveraged NASDAQ.

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