3 Reasons to Buy SPXL and 3 Reasons Not To
This ETF is trying to beat the market on a daily basis.
John Bogle, the founder of The Vanguard Group, once said the "winning formula for success in investing is owning the entire stock market through an index fund" since most professional fund managers couldn't beat the market over the long term. So instead of actively trading stocks, most investors should simply invest in a low-cost index fund that tracks the S&P 500 -- which has delivered an average annual return of 10% since its inception in 1957 -- and let it run.
Bogle passed away in 2019, but the Vanguard S&P 500 Index Fund (NASDAQMUTFUND: VFIAX) and Vanguard S&P 500 ETF (NYSEMKT: VOO) remain popular investments for long-term investors. However, there are still plenty of ETFs that are trying to beat the S&P 500 with total return swaps, futures, options, and other derivatives.
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