All of my real money is invested in Vanguard index funds & real estate. I'd like to try my hand at the market with a small portion of my portfolio, maybe 1-2%, for the education and excitement of it.
So, I opened a Robbinhood account and deposited $500 to play with. I've been reading and looking at lists, analysts ratings, etc. I clicked on the top gainers tab and checked various time frames (day,week, month, YTD, 1,2,5 year) and was attracted to leveraged ETFs, specifically SOXL.
I understand a little about leveraged ETFs. They are leveraged by the fund manager at 2X or 3X using options & futures (which I barely understand). The individual investor isn't using margin as leverage, but the fund's gains or losses are compounded by the level of leverage used.
I'm attracted to investing in sectors & funds because they spread the risk. I figure as a newbie I'm pretty clueless about choosing individual stocks and understanding what to look at to evaluate them.
What's the general view here about leveraged ETFs?