SPXL vs. SSO: Are the Significant Fluctuations of These Leveraged ETFs Beneficial for Investors? Essential Insights You Should Consider | Intellectia.AI
SPXL vs. SSO: Are the Significant Fluctuations of These Leveraged ETFs Beneficial for Investors? Essential Insights You Should Consider
Written by Emily J. Thompson, Senior Investment Analyst
Leverage Comparison: SPXL offers triple leverage on daily S&P 500 movements, while SSO provides double leverage, resulting in higher potential gains and losses for SPXL compared to SSO.
Volatility and Risk: SPXL has experienced deeper historical drawdowns and greater volatility than SSO, indicating a bumpier investment ride, especially during market corrections.
Performance Metrics: Over the past five years, SPXL has significantly outperformed SSO, tripling in value, although its total returns over the last year have only marginally surpassed those of SSO.
Investment Considerations: Both ETFs are designed for short-term trading, and investors must weigh the potential for higher returns against the increased risk and volatility associated with SPXL.
Wall Street analysts forecast SSO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SSO is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast SSO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SSO is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 58.280
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Current: 58.280
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
