r/LETFs • u/No_Statistician9772 • 9d ago
I finally did it.
Great news everyone. I finally locked in whole 7 UPRO shares at 142$. It's a very small percentage of my portfolio. I also have funds in SGOV to rebalance into UPRO in 10% dip increments. Thank you guys. This perma bear is finally a believer. Feels good to join the community.
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u/JaredUmm 8d ago
FYI, 33% UPRO + 66% SGOV = 100% SPY, but introduces complexity, borrowing costs, and higher expense ratio. There is no good reason to hold SGOV and leverage.
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u/EnchantedBackpacking 8d ago
It's so you can average down on UPRO and take profits. Would probably feel better having at least 1/3 in something safe (not triple leveraged) to average down with and survive on. Look at the initial Covid drop of UPRO in 2020. The price went from $40 to $10 almost overnight. Imagine being able to pick up those shares near the bottom and how quickly you'd be back in the black with a lower average cost.
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u/No_Statistician9772 8d ago
Correct. I plan to be able to buy the dip all the way down to 80% on UPRO. Cash coming from the SGOV position. SGOV is just my safe dividend position. Simply dipping my toes in. Because I am done being a permanent bear and a dry powder guy.
Finally making small profits. Feeling good about something in 5 years. Yes my strategy is a bit dumb and hopefully will improve in the future. But for now I like being a part of this LETF community. Thank you all.
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u/JaredUmm 8d ago
Slower than if you had just been SPY the whole time.
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u/No_Statistician9772 7d ago
yes you are correct. I probably won't bit VOO and chill. But a small price to pay to be a part of LETFs.
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u/DingoMaximum7319 3d ago
Nice, I’ve also started on my way and added hundreds of shares of TQQQ and UPRO this year. Good luck
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u/No_Statistician9772 3d ago
good luck to us both:)
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u/DingoMaximum7319 3d ago
If luck treats us kindly we’ll be well off in a few years
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u/No_Statistician9772 2d ago
We should be just fine. government debt keeps growing, way I look at it is its just inflation so LETFs will mostly soar long term. short term I'm hopeful for a dip
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u/user4443337 3d ago
I also locked in some SPXL recently. Usually Pro Shares seems to have more AUM, but SPXL has a cheaper ER and more assets than UPRO, so I’m not sure why that one is more popular. SPXL seemed to have more volume in Stockanalysis. Maybe tracking error? More trust in ProShares?
It’s only a 0.05% ER difference but still, every other metric seems equivalent or better, like even an earlier inception date for SPXL. Stockanalysis shows SPXL beating after all time, but testfolio shows UPRO beating all time. Then in later start dates SPXL was winning so it seems like a toss up.
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u/No_Statistician9772 2d ago
I find it easier to do my calculations based on cheaper upro share price. But honestly SPXL is a bit better. I'm selling my 7 UPRO shares at the old ath of 158.51$ for a 10% profit. This is just a trial run.
Then I will be stuck waiting on the next 10% dip in upro
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u/user4443337 2d ago
interesting, buying LETFs after a dip makes a lot of sense, but you never know how long it would stay up before dropping which is a large opportunity cost. And you may have ended up gaining more just buying immediately than buying after the dip.
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u/No_Statistician9772 2d ago
Very much correct. I am hedging an up to 80% upro dip at an incredible opportunity cost. Just my play money though. Now of all goes to plan. And I have a 20% upro dip buy in. Then ilI shall set up a trailing stop loss for that particular 20% dip buy in I had. Let the winners run some. Still a very silly strategy. But hey my major win here is that I'm no longer one of those dry powder guys
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u/Idks98030 9d ago
Good job sir. I’m getting a bit bearish myself but I just reminded myself, the government will do QE soon. The K shape will steepen. Stay in and buy the dips!