I went into CAGE just cause of factor exposure. XEQT is still great. If you're betting on the next 10 looking like the last 3, then HEQL will certainly outperform. There's nothing wrong with XEQT if you expect more sideways and up and down vs. 20% return per year. To each their own on how they choose to project the future.
yield
@yield · 6dEdited
$HEQL is the 👑 People scared to buy bcoz of the following reason… * 1.25x leveraged * From Smaller provider (Global X) compared to Blackrock, vanguard, BMO, cibc. * Smaller AUM (under 35Mn) * Bigger MER (people don’t understand that it included the borrow cost) * 50% Margin Requirements
Heath
@incomewealthinvestor · 6d
Because leverage is bad and high fees are bad, higher performance is bad 🤪 I have purchase each month this year!
ETF Go
@etf.go · 6dEdited
The real question is - since Adriano (and yourself) are fans of CC ETFs - is why $EQCL was left out of the comparison? Is it because that comparison isolates and shows the performance drag that a CC overlay can create? ‼️Cumulatively -7% to -26% 👀 Is it because it would also require showing the added costs to MERs/TERs? ‼️1.42% to 1.96% 👀 Why is the question not directed to CC ETF holders? 🤔 With GlobalX offering both Leverage and CC + Leverage across a number of major markets/asset classes it will become very clear over the coming years exactly the tracking error (pos/neg) that CC ETFs experience. So I look forward to seeing more of those direct comparisons. 🙏 While the ‘guarantee’ 🚩🚩 is cringe worthy enough that people should take note that this is the type of content and messaging he continues to presents - he is likely not wrong that longterm this level of leverage will add to total performance. That said - at this point in the business/market cycle I’m guessing choosing a non leveraged strategy is likely a conscious (and wise) decision for most people. Awareness of products is always a good thing. But only when biases are left out of the analysis and commentary. When 99% of content is focused on CC ETFs - yet in this case the CC ETF was left out of the comparison because it shows the flaw in 99% of the messaging - should tell people all they need to know. 🤷♂️👍
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