If today was the first investment...

[TuFlechazo]

If you were to put an initial investment in to ETF's would you buy SPXU since it's at a low? If not which one?
Thanks.

First time investor...Lets do THIS!!!

 

[Bullitt]

Do you even understand what SPXU does? Not something I'd want to hold for more than a few hours which means it's something I wouldn't want to hold at all.

The ProShares UltraPro Short S&P500 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the S&P 500.

VT is a much better option. Buy it now and don't sell it until you're in your 60's.

 

[tsptalk]

Right. Re: SPXU: Basically you would be investing in a long term decline in the stock market.

 

[bmneveu]

Right. Re: SPXU: Basically you would be investing in a long term decline in the stock market.

And the triple leverage bleeds profits. It's incredibly expensive, which is terrible for long term holds. Leveraged ETFs (long and short) should not be held long term. There is a reason why 2x ETFs don't return 200% of the underlying index, and same for 3x etc. If they did, everyone on the planet could just go 10x the S&P 500 and be billionaires in 10 years.

 

[tsptalk]

I noticed TNA has been doing a very nice job of holding up with the Russell 2000 gain, if not better than the 3X it is supposed to track.

Check this out.

Going out 5 years, the Russell (or IWM ETF in this case) went from about 98 to 224, or about +128%. TNA went from 23 to 93 or 404%. That's 5 years of grind.

And in the last year, since the low in 2020 IWM went from about 95 to 224, while TNA went from 10 to 93. Surprisingly good.

I'm not trying to disagree with your point because it is valid. I just noticed this with TNA.

 

[Bullitt]

Whoa, look at that swing in TNA.

I actually bought some TNA in April 2009 thinking it was just a bounce and that I needed to make some losses up. I sold it after like two weeks with a small gain and was EXTREMELY nervous that entire time.

Additional perspective for long term holders of TNA. From top of the world to 50%+ loss every couple years.



https://www.splithistory.com/tna/