06-22-2021, 09:38 AM
Why is holding leveraged etf funds a “bad idea”
<!-- SC_OFF --><div class="md"><p>I keep reading that holding leverages etf funds overnight is a bad idea. I understand they are leveraged so they will go down just as fast as up, but is there a deeper reason?</p> <p>Here is an example where the fund has a public warning basically saying this. It’s in the overview section <a href="https://www.direxion.com/product/daily-regional-banks-bull-3x-etf?keyword=bank%20etfs&gclid=CjwKCAjw8cCGBhB6EiwAgOReyz6iqGg6v6mB64QMkb9k6KF-Z7r3erLycrvIEw5xAJkCQtM5QpqclBoC-lYQAvD_BwE">https://www.direxion.com/product/daily-regional-banks-bull-3x-etf?keyword=bank%20etfs&gclid=CjwKCAjw8cCGBhB6EiwAgOReyz6iqGg6v6mB64QMkb9k6KF-Z7r3erLycrvIEw5xAJkCQtM5QpqclBoC-lYQAvD_BwE</a></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/fremontseahawk"> /u/fremontseahawk </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/o5d8hu/why_is_holding_leveraged_etf_funds_a_bad_idea/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/o5d8hu/why_is_holding_leveraged_etf_funds_a_bad_idea/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I keep reading that holding leverages etf funds overnight is a bad idea. I understand they are leveraged so they will go down just as fast as up, but is there a deeper reason?</p> <p>Here is an example where the fund has a public warning basically saying this. It’s in the overview section <a href="https://www.direxion.com/product/daily-regional-banks-bull-3x-etf?keyword=bank%20etfs&gclid=CjwKCAjw8cCGBhB6EiwAgOReyz6iqGg6v6mB64QMkb9k6KF-Z7r3erLycrvIEw5xAJkCQtM5QpqclBoC-lYQAvD_BwE">https://www.direxion.com/product/daily-regional-banks-bull-3x-etf?keyword=bank%20etfs&gclid=CjwKCAjw8cCGBhB6EiwAgOReyz6iqGg6v6mB64QMkb9k6KF-Z7r3erLycrvIEw5xAJkCQtM5QpqclBoC-lYQAvD_BwE</a></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/fremontseahawk"> /u/fremontseahawk </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/o5d8hu/why_is_holding_leveraged_etf_funds_a_bad_idea/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/o5d8hu/why_is_holding_leveraged_etf_funds_a_bad_idea/">[comments]</a></span>Kind Regards R