$-Cost Averaging Unleveraged ETFs In A Leveraged Account

As AI accelerates the pace of progress itself, new discoveries will build on each other in a virtuous cycle. We may be on the threshold of a new golden age of discovery, one that brings us closer than ever to understanding some of the deepest mysteries of the universe, and our place in it.

Demis Hassabis (Nobel Prize Winner and CEO of DeepMind*) – James Manyeka (senior vice president at Google/Alphabet), writing about AI in Forbes Magazine, 16 November 2024

*Google DeepMind brings together two of the world’s leading AI labs — Google Brain and DeepMind — into a single, focused team led by CEO Demis Hassabis. Over the last decade, the two teams were responsible for some of the biggest research breakthroughs in AI, many of which underpin the flourishing AI industry we see today.

Share Recommendations (7 December 2024)

Invesco QQQ. QQQ. (tracks Nasdaq 100)

iShares Semiconductor ETF. SOXX (tracks the NYSE Semiconductor index)

SPDR Select Sector Technology. XLK. (tracks the Technology sector of the S&P 500 index)

iShares Bitcoin Trust. IBIT. (holds Bitcoin)

Strategy – $-Cost Average These ETFs With Leverage

You have the general idea. How you do it is up to you. One idea would be to take an initial position in all four immediately and then add to your position each month in one of them with whatever degree of leverage you are comfortable with. I usually go five times because I am crazy. This would work better if you could maintain a matching position in cash in an interest-bearing account, thereby generating capital gains and income.

Doing this in a CFD account gives you more control over how much you invest. In a spread betting account, you have to invest a minimum amount, which may be more than you had in mind, but the gains are tax-free.

IG does not currently offer the option to buy IBIT.

Another option is investing using CFDs, selling the position as the holding builds, and reinvesting in a spread betting account.

As you can see from the quote at the top of the page people close to the action foresee an exciting future for humanity, the global economy and the US stock market. This is a great background for a programme of investing in ETFs with exposure to the most exciting parts of the US stock market.