 Hello, this is Dan. Let's talk about ETFs or exchange traded funds. If you use the right strategies, you can use ETFs to help you make a lot of profit from the ups and downs of the market. However, you need to be aware of certain dangers in buying and holding ETFs so that you can avoid losing a lot of money. Let's go into the details. What I'm about to tell you in the next few minutes is that number one, you can lose money very quickly if you hold on to certain ETFs, no matter whether the market is going up or down. And number two, don't pay any attention to the expense ratios published by the ETF companies. Let's start with one of the most popular ETFs in the world, the SPY, which is designed to mimic the movements of the S&P 500 index. I picked the S&P index for two dates that are about one year apart and compare the SPY ETF values for the same two dates. Since the S&P values are about the same for these two dates, you would expect the SPY ETF values to be about the same. The truth of the matter is that the SPY values actually gained two percent during this one year period. If I looked at the value of 2,630, the S&P 500 index actually crossed that point at least nine times in the last four years. Comparing the corresponding SPY ETF values for the same nine data points and annualizing the gains or leakages, I got the average gain of 3.0 percent a year or the average leakage of negative 3.0 percent a year. What does that mean? That means if you bought SPY a year ago when S&P is at a certain level, a year later, if S&P 500 returns to the same level, your SPY ETF will have gone up by 3 percent. That's a pretty good deal for someone holding SPY. The reason why there's a gain is because I've been using the adjusted closing price of SPY ETF, which includes the effects of dividends paid by SPY ETF fund. The S&P index, on the other hand, does not include the effect of dividends of the 500 companies that make up the index. If you can actually buy stocks from all 500 companies that make up the S&P index, you will certainly be able to receive dividends from some of those companies. In addition to the market value of the stocks. From this analysis, I believe it's pretty good to be holding SPY ETF long term, especially if the market is not going down. Let's look at another ETF that is based on the S&P index. Let's look at Upro, which is a three times leveraged ETF. That means it's designed to mimic the movements of the S&P index, except it amplifies any changes by a factor of three. When I use the same method I used before for the nine historical data points, I get an average leakage of 4.1% per year. That means on the average, if you hold Upro for a year and if S&P returns to the same point after a year, you will, on the average, lose 4.1%. In other words, it is not a good idea to be holding Upro long term because of the leakage. Let's look at two inverse ETFs related to S&P. For the SPDN inverse ETF, the leakage is 4.2% per year. For the triple inverse ETF, SPXS, the average leakage is a whopping 18.1% a year. That's a lot of leakage. Before we move on, if you like what you've seen in my video, please click the like, subscribe and notification button so that you'll be notified when I post any future videos on my YouTube channel. And I thank you very much for watching all the way up until now. Let's continue. I applied the same analysis to four NASDAQ 100 related ETFs and also to the gold ETF GLD and silver ETF SLV. This is what I found. The SPY and QQQ are certainly good ETFs a whole for longer terms because they have negative leakages or positive annual gains. SPXS, TQQQ and especially SQQQ have very high leakages. I would certainly not hold them for too long. On this table, I also listed the expense ratios published by the ETF companies. As you can see, the expense ratios are nowhere close to the actual leakages. According to Investopedia, this is the definition of expense ratio. No matter how you read this, the published expense ratios are nowhere near what the real gains or leakages are for those ETFs. That's why I've learned to ignore the expense ratios. Before I buy an ETF, I definitely do my own analysis to see what the real leakage is. Be careful. That's all I can tell you. At this point, I'd like to mention that I'm not a financial advisor. The information presented in this video is for entertainment and educational purposes only. Before you make your own decision about buying or selling stocks, you should certainly consult with your financial advisors. This wraps up my video for now. If you have a few more seconds, hang in there. I'd like to share with you some additional reference information. In the meanwhile, I'd like to wish you the best of luck with your financial investments. If you wonder when the market is going to crash again, check out the video on this topic in my playlist. The following is a list of the analytical tools I use and the information I look at every day to develop my investment strategies. After doing hours of research, I summarize my findings into a few minutes of video for you. Links are provided below this video for you to learn more about RSI, Bollinger Bands, the role of the Federal Reserve Bank, etc.