So there is now a 4x leverage SP500 with ticker “XXXX”https://www.maxetns.com/product/XXXX.P/
I'm trying to understand what the downside is. Leverage makes sense mathematically in the below scenario
Person A with $100k portfolio in SPY/SPX
If SPY/SPX falls -10%, they will lose $10k but with no cash to buy the dip remaining
Person B with $25k portfolio in XXXX and $75k cash
If XXXX falls -40% (SPY falls -10%), they will also lose $10k but now has $75k still to buy the dip (in regular SPY/SPX or anything else)
This works especially well in IRA where cash and capital is limited. The only downside I see is the 0.95% fee and leveraged ETF decay which might not make it exactly 1:4 ratio? Anything else?
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