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.
Small long-term addition to the portfolio. Buy&Hold 🚀 However, I don't want the position to get any bigger - it's more of a speculation for the future.
I am currently considering making a one-off investment in the $CL2 (-0.25%) as a one-off investment. In your opinion, does this make sense, or should I only invest in a leveraged ETF via a savings plan or in market downturns?
What is your opinion on this or do you have this ETF in your portfolio?
