please help - ETF

[qwerty123qwerty]

Hi,

Quite new to the stock market so excuse if my language is incorrect. Anyways, in order to get a diverse spread for a low cost it is sometimes advised to get an ETF.

If i got an S&P500 ETF which will mimic the performance of the index it would be good. I want to invest long term 5 years - 10 anyways. however, i recently was told about a leveraged ETF of the same....why dont all investors go for something like this.

Take for example, the stock market goes up 10% each year over the long term (10-20years)...a 2x leverage fund would go up 20% am I right in thinking?

why dont all investors do this? is there something i am missing?

Caerus

 

[the blades]

Hi,

Quite new to the stock market so excuse if my language is incorrect. Anyways, in order to get a diverse spread for a low cost it is sometimes advised to get an ETF.

If i got an S&P500 ETF which will mimic the performance of the index it would be good. I want to invest long term 5 years - 10 anyways. however, i recently was told about a leveraged ETF of the same....why dont all investors go for something like this.

Take for example, the stock market goes up 10% each year over the long term (10-20years)...a 2x leverage fund would go up 20% am I right in thinking?

why dont all investors do this? is there something i am missing?

Caerus

it's as simple as that. People are using them, but still the volume is still lower than the original 1X ETF's.

So if you're investing then no need to worry about a bit of spread. For shorter term trading this might be an issue with some of the ETF's.

UTB