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€)
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.
Good morning everyone! Wanted to ask your opinion on this particular investment plan, which consists of two leveraged ETFs ($LQQ (-0.44%) and $DBPG (+1.54%) ).
Is there anyone who already owns them or any other leveraged ETF? What do you think?
My plan is to buy a small amount every month, 15 USD in total for both, so it's not the end of the world if it doesn't work. I already invest in 5 other ETFs so my portfolio is already very steady.
I started investing in the $LQQ in january of 2023. It performed very well and it should coninue to do so in the future imho. I personally only invest in a single etf in order to save on fees.
