Leveraged ETF - Gambling Insights - Episode 4 (தமிழ்)
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- Опубликовано: 3 авг 2024
- Leveraged ETF - What is Leveraged ETF? How do they achieve their leverage? What are all the risks associated with it? How can we use this in our portfolio as a tool? All explained in Tamil with English subtitles.
00:00 Intro
01:00 What is ETF?
01:39 Leveraged ETF
02:55 Example
03:50 Costs in Leveraged ETF
04:17 Long term return impact of 3X leverage
06:05 Can leveraged ETF SPXL go to Zero?
07:05 SPXL Returns over time
08:08 Drawdown in Leveraged ETF
09:25 Strategy 1 to use Leveraged ETF
11:54 Strategy 2 to use Leveraged ETF
13:24 Hedgefundie's strategy
14:06 TQQQ - Nasdaq 100's 3X Leveraged ETF
References:
Hedgefundie's Strategy: www.bogleheads.org/forum/view...
www.investopedia.com/terms/l/...
Related Episodes:
Financial Leverage: • Financial Leverage - G...
Margin explained: • How does a margin acco...
Stocks Portfolio: • Building Wealth (Ep. 6...
Investor Maturity: • Investor Maturity in S...
Beginner mistakes in stock market - Episode 1: • Beginner Mistakes in S...
Beginner mistakes in stock market - Episode 2: • Beginner Mistakes in S...
Compounding in Business: • Compounding in Busines...
LinkedIn: / vijay-mohan-sn
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Web: vijaymohans.com
#VijayMohan #InvestmentInsights #LeveragedETF #Leverage #SPXL #TQQQ #UPRO #TMF
DISCLAIMER:
The content of this video is my own opinions and is for information purposes only. It is not intended as a substitute for professional financial advice. It is only intended to provide education about investments.
இந்த மாதிரி விஷயத்தை மிக நுணுக்கமாகவும் சூப்பராகவும் பயனுள்ளதாகவும் எங்களுக்கு வழங்கி உள்ளீர்கள் இந்த மாதிரி யாரும் எந்த youtube றும் சொன்னது இல்லை மிக்க நன்றி 👋👋👋🙏🙏🙏🙏🙏
Highly under rated tamil finance channel in RUclips. Rocking sir! Well done?
This video was released in the right timing when market started correcting. Thanks a lot for educating at the right timing
Today i have learned new concept from you Vijay. Definitely this is a eye opener. I would consider this option soon.
Great Video Viji.. Just what I wanted. Thanks much for sharing
I have been to the heavy drawdown in my lifetime... That's where I learned my mistakes and become hell rock... 🤣 Unga video thonda thonda onu kedachite iruku... Sometimes new learnings, sometimes Ada ithu therinjum nama ethum panrathu ilaye feelings... But very very entertaining, informative and more importantly easy to understand...
Really good content and very insightful looking forward for more of your videos
Insightful video sir, thank you for the detailed explanation and comparisons. Happy new year 🎈🎊
This channel subscribers are really gifted.
We can't get valuable information simply.
Thanks Vijay sir.
Thanks for your awesome video Vijay Mohan..
Happy New year sir. New content.. New learning in this New year.
Quite unbelievable return 👍. Thanks for the info
very good topic ; unknown to many investors i trust...
Tharamaana topic - learnt something new today
Sir really eye opener for me and very informative sir thx for you valuable content
It is very new information to me. Thanks for sharing.
My biggest eye opener video
As always new year with new understanding of market .thanks a ton vijay . Happy new year wishes to you
Happy new year!!
Very good explanation Vijay. Thx and wish you and your loved ones happy new year
Happy new year to you too...
This is an Eye-Opener. I have never came across this Leverage ETF Strategy in RUclips or talked by other Tamil RUclipsrs.. I shall definitely use it during the distressed time as recommended.
Interested to know how much % of Leveraged ETF you have in your portfolio ? or did you use it in the past & made profit ?
I do not like to trade. If I buy something, very rarely I sell. I do have TQQQ. It is 5% of my total portfolio.
@@InvestmentInsightsTamil since where are you holding this ETF?
@@InvestmentInsightsTamil Thank you for your reply. Appreciate for all insights you are posting to the Tamil Community. Keep rocking !!! Looking forward for more updates/videos like this.!!
Wow, i thought i am reasonably well versed with investing. this blew my mind. ty
Sir, very insightful video. Thank you so much for such interesting content. Wish you a very happy new year.
Happy new year to you too.
Great information sir. Thank you and happy new year
Happy new year to you too...
Happy New Year Sir. Thank you for your Wonderful and Educational Investing Videos.
Happy new year!
Very useful video with a detailed information. Wish u happy new year!!!!
Happy new year to you too.
Excellent Sir !!!
Very informative 👍thank you sir.
Video full ah pakala but did like anna 👍bcz I know your the best financial teacher 👨🏫 wish you Happy Newyear
Very good one!
Hi Sir, your videos are all very great.
Brilliant vlog sir...thanks
Really super information sir
Super video sir. Thank you. Please do more educational videos.
Thanks. Very useful info
The Great Vijay mohan 👍
Friday evening become a new routine of waiting for new video and I see that its happening for couple of weeks, Thanks for being consistent. Good Job, Happy new Year.
Happy new year to you too!
Super content , 😎👌👌👌👌👌
Just I realized, I following your suggestions for my portfolio at risk level3.
Hi Vijay, Thanks for the new information sir. Happy New year #InvestmentInsights
Happy new year.
அருமை
perfect timing for me I think.I just have to figure it out how not to be greedy or crazy. Thanks a lot.
Just remember. Though it has gone down more than 80%, it can still go down another 80% from here.
@@InvestmentInsightsTamil yes, I understand that. like you said can't time the market.
Happy new year sir new topic learn with your help sir
Happy new year to you too...
Happy New year to you and your family
Happy new year to you too...
Thanks for the explaining this concept. I burned my hand investing in a 3x gold ETF 10 years ago, followed similar strategy to add to it when it drops. But 1 fine day they reverse split 10:1 and kept reverse splitting everytime they go below $20. My investments became worthless after the third round. Please do add an episode on why and how companies do reverse split their stocks.
very valuable information, thanks, I never expected reverse split, Will they do this in TQQQ ?
NEW YEAR START WITH WATCHING INVESTMENT VIDEOS 🔥
Happy New Year!
Happy New Year Sir!!
Happy New Year to you too.
Happy new year to you and your family 💐 💐
Happy new year to you too...
you are the rockstar!
Thanks so much vijay, very informative. Could you also talk about ‘swaps’ When you explain about derivatives.
Advanced Wish you a happy new year to you and your family Mohan
Happy new year to you too...
Hi Vijay, the video was very insightful. Can you also deep dive into 2x leveraged ETF like SSO & QLD and provide your point of view for holding it long term? Thank you so much, all your contents are amazing.
It essentially follow similar logic. Nothing different. Just less aggressive than 3X.
Super Sir
Happy new year aasan...
Happy new year to you too...
HAPPY NEW YEAR THALAIVAREA
Happy new year to you too...
Thanks sir
Thanks Vijay, I was under the impression that only individual stocks would give me better return but after watching this video I have changed my thoughts. please suggest few best financial forums / website to understand more topics like this.
But remember, this is not regular investment. This is taking bigger risk. That is why I have this under "Gambling Insights". Forums - link is in the description.
@@InvestmentInsightsTamil thanks Vijay, is there any other forum or blog where I can get more info on finance / investment etc? thanks in advance.
Happy New year sir
Happy new year to you too...
Happy new year 🥳
Happy new year to you too...
Happy new year 🎉 ✨ 💛
Happy new year!!
Happy new year, very informative!!
Happy new year to you too...
Hi sir , could you please recommend books to develop oru financial knowledge in stock market. If you could make video on this also grateful for us sir. Books like , books for newbies, books for intermediary, books for experts.thanks for sharing valuable information sir ❤️🙏
Sir you are content is great can you substitute indian market for leveraged ETF?
Happy New year 🎉🎉🎉 have a happy life with your family ❤️❤️❤️
Happy new year to you too...
Hi Vijay, Could you please explain about like banknify option trading in US market and where we can find the more details about CE and PE?
Sir pls explain about futures and option
Hi sir,
Happy new year. Is sip investment type is best in indian share market? If yes, how to proceed for good returns?
Happy New year for you and your family sir !!!!
Happy new year!
Thank you for the detailed information.. if we had invested some part of portfolio into leverage funds.. during market correction like this, should we exit out if it drops beyond a certain percentage or just continue to hold on for long term
Everyone follow their own strategy when it comes to Leveraged ETF. I have shared the strategy that made sense to me in the video already.
🔥🔥🔥
Sir small cap fund pathi pasunga
New topic, is there any possibility to invest in US ETF from India????
Thank you sir for giving us a high quality education.
A question for you:
A few months ago, both QQQ and TQQQ hit all-time highs, but they later declined. Recently, QQQ reached another all-time high, while TQQQ hasn't. Any idea why this difference occurred?
3X leveraged ETF tries to achieve 3X only on that given day. Not for a period of time. This is something that many miss to note.
Lets say QQQ is at 100 and loses 10% everyday for 3 days. Its price will be 90, 81 and 72.9 by the third day. Lets say TQQQ was at 100 as well in the beginning. Its price will be 70, 40 and 34.3 by the third day (Going down by 30% everyday). Now say that QQQ gains 10% everyday for the next 3 days and 3% in the last day to reach back to 100 (80.2, 88.2, 97 and 99.9). TQQQ would gain 30% everyday and 9% on the fourth day. Its price will look like this 44.6, 58, 75.4, 82.1. As we can see, it is still 18% down from its peak 100.
Sir, please advise on Franklin Templeton us opportunities fund... Shall we continue to do sip investment in this fund? US market correction and sip investment in us funds...
Boss, Can we add SPXS or SQQQ to our portfolio to hedge the leveraged ETFS in case the market goes to the south? Thank you for your videos...makkalae follow all his videos and start building your portfolios...all videos are gems no one can stop you from being a billionaire
Thanks for the video. The content clarity is awesome as usual. I have two questions.
People on the internet keep saying it is impossible to give 2X/3X return through a leveraged ETF over the long time, so should we use any specific strategy to balance and mitigate the situation.
The second one is some of the retirement account brokerage ( vanguard ) does not allow us to invest in any leveraged ETF. Are there any Roth IRA providers that allow these leveraged ETF buy/sell?
1. History does not agree with those people. But hey, everyone is entitled to their own opinion.
2. Vanguard does not allow it. Charles Schwab does.
Hi sir, I recently started following ur video based on my friends suggestion when I asked him about financial planning ideas and I find it useful too. Regarding term insurance, which is good, my friend suggested Max life, is it good or should I opt for other. My age is 30 and am the only person earning with wife, father and mother as dependent
You cannot go wrong with any of the top insurers. Go ahead.
What is difference between 1x and -1x etf and individual shares leverage product. Please share some basic understanding.
Can you please review and let me know your thoughts for the question which I posted in Building wealth series episode 6. Thanks in advance sir
Sir, Can you stalk about invit & REIT, thanks
வணக்கம் விஜய் மோகன் சார் 🙏🏻 😊
Today is exactly 1 year from posting this video! Please post something like these leveraged ETF in Indian stock market
Sir, how to by this etf from Indian market, like Motilal Nasdaq etf?
Thanks for the video sir. I am planning to open a account for buying etf, but not sure which account or company. Which one do you recommend..fidelity or vanguard
Any brokerage is fine. Fidelity, Vanguard, Charles Schwab etc.
Thanks for golden channel. Are you able to also suggest some etfs and leveraged etfs available in UK please ?
Sorry. I am not really familiar with ETFs available in UK.
Tqqq has a good chance of going to zero since there is no breaker for qqq unlike smp500. If you find a correction like maker going down 20% it’s best to buy long option calls contract.
I wouldn't say good chance, but yes, there is a chance.
Happy New Year. I watched all your videos in the last week, and it was like a concentrated recap of financial knowledge i gained from browsing reddit in the past 3-4 years. I do have a few questions:
1. In Term Insurance, the desired coverage is 25x annual expenses, but wont our annual expenses increase with inflation and lifestyle creep(bachelor to family), or is it supposed to be offset by our investments?
2. Does investing in motilal oswal s&p500 fund come under the 250k dollar limit per year under LRS to be sent abroad, and do we get rupee depreciation benefit from the funds?
3. With all the new wave of investors in stocks and crypto who are conditioned to buy every dip and hodl with diamond hands, will "stocks only go up" become a self fulfilling prophecy or will they be left bagholding if everything actualluy crashes like in the case of 1989 Japan, where Nikkei is yet to breach its ATH even after 30 years? Shouldn't some line be drawn to take small profits from time to time, or to stop our losses?
1. It will increase for sure. You have to make a reasonable prediction of what that could be and buy the insurance.
2. It does not come under 250K. And Yes, rupee depreciation benefit will be there.
3. I personally do not like to predict anything. I just stay invested regardless of market condition. Rise or dip.
@@InvestmentInsightsTamil Thank you for your insights
Please check ETF again. Suppose if I were to buy a 3x ETF. The market drops 30% my ETF will drop 90%. Now if the market raises back to previous price that is let's say 40 %. My ETF which let's assume was 100 dropped to 10 ( because the market dropped) and now the market rose 40% so now ETF will raise from 10 to 22 right ? ( 10 to 22 because 40% raise is 120% raise in Leverage ETF). The question being if market falls 30% and raises 30% . My Leverage ETF will still be down about 80 odd % right. Am I missing something? Is my calculation wrong ?
@@meenakshisundareswaran7770 you are calculating whole dollar amount, you should consider the number of units you hold.
Very useful information sir. I have a question, whether these leveraged ETFs are also available and applicable for Indian market?
No. It is not available in India yet.
Hello Vijay mohan, please teach us candle techniques and how to analyse
Sorry. I do not do trading. And I have no idea about those.
Please share as of today, Leveraged ETF. Seems still good time to enter TQQQ?
Can we invest in such leveraged ETFs from India? Please guide. Are there any such leveraged ETFs for Nifty50 currently or it would only be available in the future?
Sir, please share your knowledge on the below.
Shortly I have invested in index funds because most of the videos they said index is best and now I reached to some advisor they referring funds like active I guess may be hybrid or something like that but they didn't said about index and it can beat index like that...
Choose the one that makes sense to you. In finance, there is nothing right or wrong. We do, what makes sense to us. You are not going to gain anything by cross checking your advisor's recommendation with someone else. Everyone is different and have their own strategies. Follow your own.
Hi Sir, Can Indian invest in there US based Leveraged ETF's? Do these come under margin trading in US instruments?
Thanks for this. Are there any options available for folks in India to invest in such leveraged ETFs?
Not yet.
Sir i buy union large and mid cap fund regular growth last December throu distbutar i want change direct fund how can I do please tell me that expance rasio is 2.55 I purchase 20 thousand Rupees lumsome
Other country etf la invest pannalama? Since vietnam, South korea & malaysia are in lesser price?
How about doing session on reverse ETFS ?
Idhula kodda swing pannalaam.. mkt reverse pannumbodhu vaangi 1 week kulla vithudalaam..
Good Video sir.
As per my understanding, The main problem with 3x leverage etf starts when the markets go down heavily from the peak. we may need to wait more more time to recover the money if we buy 3x_etf than 1x_etf.
Some example, I was using the below numbers for my own understanding how 1x vs. 3x return differs, what risks are involved in the recovery of the money….
let us assume,
snp500_etf peak price: $100
snp500_3x_etf peak price: $100
let us assume, we are buying 1x and 3x etf when 1x etf down 15%,
snp500_etf current price: $ 85 (down 15%)
snp500_3x_etf current price: $ 55 (down 45%)
let us assume the markets goes to max down 35%,
snp500_etf current price: $ 65 (down 35%)
snp500_3x_etf current price: $20 (down approx.. 80%)
to recover our money which we bought snp500_etf ( we bought at $85 rate),
snp500_etf needs to go to $85 from $65..... 30% return is needed.
to recover our money which we bought snp500_3x_etf (we bought at $55 rate)
snp500_3x_etf needs to go to $55 from $20..... 175% return is needed. (Which is expecting approx. 175/3 == 58% return in the
snp500_etf...but with 30% return snp500_etf investment recovered the money).....what happens if snp500_etf goes to $65 and then going down another 20%, snp500_3x_etf investment will be in bad shape and 3x looks really dangerous when the market is down, up and down heavily in shorter period time.
Once again, appreciate your effort in explaining leverage etf and I like all your videos. All are valuable for stock market beginners like me,.
No doubt, that it is dangerous. That is why playing with Lev etf is not investment, but gambling.
@@InvestmentInsightsTamil Thank you sir for the response.
Hi Vijay, A small question..At time 3:19 when you talk about SPXL allocation in a day, the swaps percentage should be 22% or 222%?
It is 222% - that is the leverage part to get to 300% (3X).
@@InvestmentInsightsTamil thanks Vijay.இனிய புத்தாண்டு வாழ்த்துக்கள்🙏
Vijay, Guess you may be aware of inverse leverage ETF for most of leveraged ETFs available in market which do reverse of the Bull/Bear 1x/2x/3x ETFs. Those who can predict the short term prediction range can play with both for "Maximum" benefit... "Maximum benefit" nale nalla vayiru irukanum otherwise vegas trip madri nenachukanum... hahaha.... If you can cover inverse leverage ETFs it may be good... By the way those who interested for india leverage ETF, Can try INDL.
A wiseman once said, market prediction is a fool's game.🙂 And that is why I did not even cover that. Also, in my opinion, no one should "bet" against the market.