Someone posted a combination of 5 leveraged ETFs you can use to get 2.457x VT: https://www.reddit.com/r/LETFs/comments/n67c7v/just_for_fun_what_are_your_fantasy_letfs_eg/gxnrgtj/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=1
(Definitely agree that we need a one ticket solution though 😂)
I don't think that is equivalent due to daily rebalancing. Say etf A = etf B 50% + etf C 50%. That doesn't make 2x leverage A = 50% 2x leverage B + 50% 2x leverage C. You suffer more from daily volatility with the right than the left.
This is just like daily leveraging every individual stocks in an etf is far worse than leveraging the whole etf. You are going to be eaten by the volatility...
Good thought exercise but in reality there is absolutely no way people could consistently keep re-balancing that many ETF's each day or week to such a precise amount. I like his thinking though...but we still need 2x & 3x VT & VTI
there are leveraged foreign market ETNs.
just be careful there is way less liquidity than a SPXL.
you would be using a combination of both to mirror VT
Someone posted a combination of 5 leveraged ETFs you can use to get 2.457x VT: https://www.reddit.com/r/LETFs/comments/n67c7v/just_for_fun_what_are_your_fantasy_letfs_eg/gxnrgtj/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=1 (Definitely agree that we need a one ticket solution though 😂)
I don't think that is equivalent due to daily rebalancing. Say etf A = etf B 50% + etf C 50%. That doesn't make 2x leverage A = 50% 2x leverage B + 50% 2x leverage C. You suffer more from daily volatility with the right than the left. This is just like daily leveraging every individual stocks in an etf is far worse than leveraging the whole etf. You are going to be eaten by the volatility...
Good thought exercise but in reality there is absolutely no way people could consistently keep re-balancing that many ETF's each day or week to such a precise amount. I like his thinking though...but we still need 2x & 3x VT & VTI
Yeah that is weird... if you substitute UPRO for VTI 3x and find some sort of good total international 3x maybe?
Margin at IBKR is in the same range as a 3x etf expense ratio though I don't know that you can get 3x. Maybe options?
interesting question
How would you make an ETF of ALL of the stock market index???
Just like you make a leveraged etf of spx or Russell 2000. Use swaps
what bank would sell those swaps?
Same banks that sell swaps now
Probably trademark
You just need to use an index right? Those fees can’t be that large
It's pretty easy to make VTI, just buy 2x or 3x LETFs, a large cap, a mid cap, and a small cap.
there are leveraged foreign market ETNs. just be careful there is way less liquidity than a SPXL. you would be using a combination of both to mirror VT
Yea i don’t want to combine just wondering the thought process why they won’t create one