Recently I've been looking at leveraged ETFs (typically between 1.5-2.5x) such as GGUS and GEAR.
I see the direct* management fees are about 0.8-1%, and I can't find any mention of cost of borrowing or anything similar like you do when you individually try and take out a margin loan. Is this because the funds are leveraged through use of futures and the cost of 1.5-2.5x exposure is actually limited to that 0.8-1%, orrr is it because the fund managers have hidden the cost of borrowing deep in the prospectus and PDS?
*these leveraged funds usually invest 100% of their assets in some other ETF, e.g. GGUS has 100% allocated to NASDAQ-listed ETF: IVV, and IVV has its own management fee of about 0.04%, which would indirectly be a cost to you.
