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saintforlife1
New Orleans Saints Fan
Member since Jul 2012
617 posts

How long should you hold a leveraged ETF?


What should be a typical time horizon to get in and get out of leveraged ETFs such as UVXY, SVXY, TVIX etc.? Also can someone explain 'time decay' in somewhat layman terms?






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Cmlsu5618
McNeese State Fan
Destin/Jacksonville, FL
Member since Sep 2010
1807 posts

re: How long should you hold a leveraged ETF?


Do a thread search. I've personally asked this and I know several others have.





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reb13
Ole Miss Fan
Oxford, MS
Member since May 2010
9422 posts

re: How long should you hold a leveraged ETF?


I asked this question and the consensus was very very short term.





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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
28602 posts

re: How long should you hold a leveraged ETF?


quote:

What should be a typical time horizon to get in and get out of leveraged ETFs


Get in when it is about to go up. Get out when it is about to go down. I'm not trying to be a dick, that's about the only good advice on the subject I can think of.

"Time decay" refers to the fact that these funds borrow large amounts of money and/or invest in derivative contracts that expire on a certain date. This has the effect of boosting volatility relatively cheaply (which is why most customers buy in the first place) but the passage of time has an inherent cost.






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