Leveraged ETF Watchlist: SPUU’s Drift is Still Working Against It

If you’re eyeing leveraged ETFs, especially the double‑long ride on the SPUU (which aims for 2× the daily performance of the SPY), the latest from Seeking Alpha highlights a key issue: performance drift and capital erosion are quietly eating away at potential gains.  Here’s the rundown: SPUU strives to deliver twice the S&P 500’s daily return, but because it uses daily re‑balancing and leverage, over time its tracking diverges.  In volatile or sideways markets, this divergence (or “drift”) becomes more severe, meaning long‑term returns may look very different than simply “2× the S&P 500”.  The analysis doesn’t say SPUU is a bad trade per se—but it reinforces that leveraged funds are best used for short‑term tactical plays rather than buy‑and‑hold strategies.  Investors considering SPUU should ask themselves: Are you comfortable with greater risk and greater uncertainty in long‑term outcome? If so, you may proceed—but know what you’re dealing with. #leveragedETF #SPUU #ETFdrift #investmentrisk #SlimScan #GrowthStocks #CANSLIM