El FONDO que TRIPLICA x3 al S&P500: Cómo FUNCIONA?

About this video

• Video Title: El FONDO que TRIPLICA x3 al S&P500: Cómo FUNCIONA?
• Channel: Javier DV - Inversión y Finanzas
• Speakers: Javier DV
• Duration: 00:16:13

Overview

This video explains how leveraged Exchange Traded Products (ETPs) work, specifically focusing on those that aim to triple the performance of indices like the S&P 500. The presenter clarifies the concept of leverage, the risks involved, and how leveraged ETPs differ from direct leveraged investments. It also highlights the phenomenon of "volatility drag" and the associated costs and risks of using these products, suggesting they are best suited for short-term trading strategies rather than long-term investing.

Key takeaways

• Leverage Amplifies Returns and Risks: Leveraging allows investors to amplify both potential gains and losses.
• Leveraged ETPs as a Solution: Leveraged ETPs offer a way to gain leveraged exposure without directly borrowing from a broker, thus avoiding margin calls.
• Understanding Volatility Drag: The "volatility drag" or "arrastre de volatilidad" is a key risk where compounding daily returns in volatile markets can lead to underperformance compared to the underlying index over longer periods, even if the index's net return is zero.
• Daily Rebalancing and Costs: Leveraged ETPs are rebalanced daily to maintain their target leverage, which incurs higher costs (TER) and management fees compared to traditional ETFs.
• Trading vs. Long-Term Investment: Due to volatility drag and costs, leveraged ETPs are generally more suitable for short-term trading strategies, especially in trending markets, rather than long-term buy-and-hold investments.