Since inception (60 + years, almost 100 years if you cont the early days aswell) the S&P 500 has had an average return of about 10%. S&P 500 tracking ETFs have become the most mainstream investing method and many investors are betting the majority of their life savings that S&P 500 will keep going up.
Why are people not investing in a triple leveraged S&P 500 ETF like UPRO if we are so sure S&P will keep going up. Or perhaps a 2x leveraged like SSO with even lower expenses.
The downsides i see:
The expense ratio, but it is only at 0.91%, the actual benefit of getting over the double return of S&P outweigh the actual expenses by a landslide.
The only other problem i see is the perceived risk, it crashes way harder than the S&P but it also recovers way harder, so if you just stay true to your prinicpals as if it was the actual S&P and dont let emotions influence decision, then you would stille benefit way more.
So im wondering why isnt it talked about more? What are the downsides i havent realised? Why is my goto investment not UPRO or SSO?
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