I'm invested in ETFs, primarily XEQT in my TFSA and FHSA and then corporate class holdings (GlobalX) in my non registered. I'm 19 years old and plan on holding my investments for over a decade. My goal here is to use leverage to boost my gains while not over leveraging to the point it becomes a serious risk. I'm split between two options here.
The first option is to use LETFs, I've been reading up on them for a little while and have a general understanding. LETFs give a daily multiple on an index's return but have a downside of volatility decay.
I'm also evaluating using margin or a PLOC as a way to do this as well. I was thinking I could leverage maybe 20-30%. This would all be done in a non registered account which is why I'm leaning towards margin or a PLOC which Wealthsimple gives me. The interest cost of borrowing can also be tax deductible if it's used to generate investment income which it is in this case if I use a PLOC or margin versus LETFs.
I understand margin comes with the risk of being called which can obviously happen given that I'm invested in equities. With LETFs, I also understand the asymmetric hole you can get into when things drop. However, I'm not sure volatility decay will actually be an issue over the long term??
My main question is: am I overlooking anything? What is the general consensus on doing something like this?