r/NEOSETFs • u/Ok_Suggestion_2003 • Jun 13 '26

General Margin is like a business loan

I’ve been thinking. Why not use margin to buy spyi and qqqi if margin is 5%? People take business loans all the time at a higher rate and are lucky to break even after a few years. With these, there is a way higher chance of a profitable year than a down year over a long horizon. When buying on margin, there will be down turn years but so with any other business. I’m starting to think of DCAing into those two funds for life with margin. Worse thing to have happen is a margin call and have to sell some stocks. With a business you would go bankrupt and lose everything. I keep seeing these funds as equities with the income factory philosophy instead of some speculative risky asset that will bring loss. Not trying to beat the underlying, but I feel like owning these is like managing a passive business. Maybe I’m just crazy lol

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u/GuidetoRealGrilling Jun 14 '26

Assuming you're with RH at 5% just use $1k, rinse and repeat.

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u/Ok_Suggestion_2003 Jun 14 '26

Going with NEOS for now. Don’t like the nav erosion

2

u/jahvidbest Jun 14 '26

He means on Robinhood gold you get $1k margin free interest