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  • Pull up their chart and dividend payment history and take a look at prices and payments. Issue isn’t fees but rather principle erosion and payment cuts. They rebalance periodically and suffer from “decay”, where they fund does worse than the underlying shares they represent.

    There’s an author on Seeking Alpha that put together a high yield portfolio using 2x ETNs he named YMBC (You Must Be Crazy) . Last full post I can find about it was in AUG 2017: [https://seekingalpha.com/article/4099188-must-crazy-high-yield-portfolio](https://seekingalpha.com/article/4099188-must-crazy-high-yield-portfolio) so I don’t think its working out that well.

    Leveraged funds like this are really built for use as short term vehicles.

  • The strategy does not make sense, as Deckard points out. But I would not say you are an idiot because you asked questions about it first vs. just jumping in.

    If you want leverage for long term investing, you can explore LEAPS, futures, and investing on margin. Keep in mind that most people are not able to psychologically handle 100% equities, and you would be above 100%. Look up markettimer on the bogleheads website.

    For now, stick to index funds. I like VT. You own the whole world. If you want more risk/reward, look at VWO (emerging markets).

  • I haven’t looked at fees for these lately but often there are additional underlying costs from the holdings in addition to the ETN managment fee. Usually come to at least 1.5% total expense ratio with many exceeding 2% for a leveraged offering. If you want to experiment with very high yield consider REIT ETFs like SRET or learn about closed end funds like FOF. These are not risk free but somewhat less erratic than leveraged morgage REITs.

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