r/letfs
Leveraged ETF-like investing with margin for 4.64% interest (2x and above)
Author promotes Frec, a direct indexing platform offering 4.64% margin and tax-loss harvesting to build a 2x leveraged S&P 500 portfolio.
- Frec offers a highly competitive margin rate of 4.64% for leveraged investing.
- Direct indexing enables tax-loss harvesting, boosting compound returns via tax deferral.
- Provides substantial margin up to 70% of portfolio value, easily allowing 2x leverage.
- Requires active and frequent borrowing (e.g., every few days) to maximize available margin.
I thought people in this sub might be interested but I found what I think might be one of the best margin rates and availability currently in the market. It's a company called Frec and they do Direct Indexing. You can read on their website what this means but essentially it allows you to do more tax loss harvesting, getting money back in taxes now so you have more to grow your portfolio (yes you do need to pay for it eventually, unless like me you plan on donating it to charity, but the tax deferral allows you to get more compound interest). You can invest in S&P 500 or some other indexes and the costs are only marginally higher than ETFs.
Anyways arguably the most important thing they do is give you cheap and plentiful margin. They say you get up to 70% of your portfolio value but as you can see here I have about 2x right now and the limit just keeps going up.
If you want to max out your available margin you need to borrow more every day or so, they don't give it all at once. In this case I was just borrowing more once every few days and this is where I am after about a month.
Anyways if you're interested you can use this \referral link\, it gets you $250 if you invest.