I want to understand swap financing cost
First of all, I'm not sure the term 'Swap Financing Cost' is right. Please tell me if it's right.
As you know there's a hidden cost in leveraged etf. The fee from swap contract. I'm not sure but I heard that this cost is approximately 2.1~2.4 times the interest rate.(for 3x leverage)
In Korea's tqqq community, very few people talk about this cost and no one actually made backtest that is reliable. I've searched for this cost and tried to backtest by myself but couldn't do it because of my lack of knowledge.
So what I wanna know is
how much effect swap cost does for long term holding TQQQ?
Is QLD better than TQQQ if the cost is included?(not just last 5years but the normal trend.)
Is it impossible to backtest? I haven't found a backtest that includes cost in reddit. Please let me know if you know some.