Please ensure Javascript is enabled for purposes of website accessibility

Should Young Investors Buy Leveraged ETFs?

By David Hanson and Matt Koppenheffer – Jan 15, 2014 at 5:53PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are leveraged ETFs a good bet for long-term investors?

Investors with long time horizons, such as young people, can often afford to take on a greater amount of risk in their portfolios.

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson dip into their mailbag to answer a listener's question about buying leveraged ETFs to take advantage of the a long runaway in front of younger investors. Matt and David highlights the dangers of such a practice.

The real secret to getting rich
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

David Hanson owns shares of JPMorgan Chase. Matt Koppenheffer owns shares of Bank of America, Citigroup, and JPMorgan Chase. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, Google, JPMorgan Chase, and Wells Fargo. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.