Seeking Alpha
03 Aug 2026, 15:44 UTC · 1h ago
Leveraged ETFs Watchlist And Focus On SPXL History
NewsImpactScreener rates every claim in this story for market impact and maps it to the tickers most exposed.
Seeking Alpha
03 Aug 2026, 15:44 UTC · 1h ago
NewsImpactScreener rates every claim in this story for market impact and maps it to the tickers most exposed.
What the story claims
3 claims · each scored for market impact
SPXL simulation since 2000 shows a maximum drawdown of -98% and underperformance relative to SPY for buy-and-hold strategies. — Extremely high drawdown risk and long-term underperformance discourage long-term holding of leveraged ETFs.
-0.80SPXL suffers from leverage-induced drift and decay, with an average 12-month drift of -2.25%. — Constant value erosion due to volatility decay reduces the efficiency of the instrument for investors.
-0.40SPXL's long-term annualized return since inception is nearly 30%, outpacing the S&P 500. — Positive historical returns demonstrate the potential for significant gains during strong bull markets.
+0.30Which stocks this story touches
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The article highlights leverage-induced drift, decay, and significant potential drawdowns for the ETF.
The article notes that SPY would have outperformed SPXL in a long-term simulated buy-and-hold scenario.
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The Motley Fool
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