Academic Research Archives

Using Options vs. Leverage for Long-Term Returns: A Data-Driven Analysis

Nick08 mins

Investors often face the dilemma of choosing between leveraging their portfolios or using options to enhance long-term returns. Both strategies offer the potential for outsized gains but come with distinct trade-offs. In this post, we’ll dive into the nuances of each approach, exploring the data behind them to help you make an informed decision that…

Leveraged ETFs vs. Pure Leverage: A Deep Dive into the Better Strategy for Amplifying Returns

Nick011 mins

In the quest for higher returns, many investors turn to strategies that offer leverage, allowing them to amplify their exposure to financial markets. Two popular methods are leveraged ETFs and pure leverage, such as borrowing on margin. While both approaches aim to enhance returns, they differ significantly in terms of costs, risks, and long-term performance….