ultra ETF investment question

[tourbillon_IHB]

Since my new job will not allow me to watch over my stock investment like my current job, I am looking for some easier and more automated ways of managing my investment. Ultra ETF(both sp500 and naq) sounds like a pretty good idea. I have watched their performance over the past 1 year and they generally outperform their respective index by about 70% (not quite 100%, but they only aim to double daily return). Is there any issue I need to watch out for other than tax? I know they have higher management fee, but for a increase performance of 70%, 1 or 2% extra fee sounded reasonable enough to me.

 

[bishie_IHB]

The main disadvantage of those funds is the taxes since they generate mainly short term capital gains. Obviously they are also more risky.

 

[fumbling_IHB]

If they go up 70% then they can also go down 70% since they have high beta both on the upside and the downside, and when the markets are flat or down, the higher expenses will really eat away your returns just like high mello roos taxes and property taxes eat away the property flipper's returns. The QQQQ ETF is better because of its low expenses (around 0.2% I believe). Don't bother leveraging it, as the margin interest you are charged will be around 8-10% which will offset any gains from leveraging.