Leveraged ETFs is the way for us to capture the upside of the market on small investment amount that we own. We can not be satisfied with risk less or 5% investment return product which may not be sufficient for our need. Also at the time of lows of the market it would be major blow to our strategies.
Since we own small amount and we completely rely on our constant monthly income our risk is more on losing our job compare to leveraged ETFs.
On good time the leveraged ETFs give us the opportunity to earn income.
From risk perspective a single name stock has similar volatility compare to leveraged ETFs and chances of blowing out is same on both. For example Zoom video or small cap biotechnology names.
We take the risk in leveraged form because the market tends to recover faster than single name due to.diversifications.
Please do not kill this smart product as it has given us the way to thematic investment when convictions are strong.
Manish Sinha Comment On Regulatory Notice 22-08
Leveraged ETFs is the way for us to capture the upside of the market on small investment amount that we own. We can not be satisfied with risk less or 5% investment return product which may not be sufficient for our need. Also at the time of lows of the market it would be major blow to our strategies.
Since we own small amount and we completely rely on our constant monthly income our risk is more on losing our job compare to leveraged ETFs.
On good time the leveraged ETFs give us the opportunity to earn income.
From risk perspective a single name stock has similar volatility compare to leveraged ETFs and chances of blowing out is same on both. For example Zoom video or small cap biotechnology names.
We take the risk in leveraged form because the market tends to recover faster than single name due to.diversifications.
Please do not kill this smart product as it has given us the way to thematic investment when convictions are strong.