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00675L (Fubon TAIEX Daily 2x): Long-Term Hold Simulation
00675L tracks 2× the *daily* return of the TAIEX — Taiwan's whole-market index, not just the Taiwan 50. In Taiwan's long-running "hold a leveraged ETF forever" debate this is the index-purist's pick: a broader underlying and ~0.75% annual costs. This page loads its real parameters into the simulator and lets the numbers talk.
Leveraged ETF Calculator
Compare how much of a leveraged ETF to hold versus its plain 1× index — five splits from all-leverage to all-index, rebalanced monthly, quarterly or yearly. See CAGR, drawdown and risk-adjusted return, volatility decay included.
Underlying index
Index
Expected return (CAGR)The 1× index's compound annual growth rate. The leveraged fund is built from this — you don't enter it directly.
%
VolatilityHow wildly the index's returns swing year to year. This is the engine of volatility decay: the higher it is, the more a 2×/3× fund bleeds in choppy markets.
%
Leverage & rebalancing
Leverage factorThe leverage of the risky fund, used in both the all-in hold and the blend. Real products offer 2× or 3×.
Rebalancing frequencyHow often each split is traded back to its target weights. Higher frequency tracks the target exposure more tightly and “buys low, sells high” more often, but in practice also means more trading costs and taxes (not modelled here).
The tool compares five fixed splits — 100/0, 75/25, 50/50, 25/75, 0/100 — of this leveraged fund and its plain 1× index, all rebalanced yearly.
Capital & horizon
Holding period
yrs
Fund costs
Expense ratioThe fund's annual fee, charged on the whole position. Leveraged ETFs typically run 0.9–1.0%, far above a plain index fund's ~0.05%.
%
Financing rateThe annual interest a leveraged fund pays to borrow its extra exposure. Charged on the borrowed (L−1)× portion, so it hits 3× harder than 2× and never touches 1×. Tracks short-term rates.
%
Strategy comparison
fund / 1×
100/0
2.0×
75/25
1.8×
50/50
1.5×
25/75
1.3×
0/100
1.0×
Median ending value
2.5M
2.0M
1.5M
1.1M
831K
CAGR
37.9%
34.8%
31.4%
27.6%
23.6%
Volatility
42.1%
37.0%
31.9%
26.6%
21.0%
Max drawdownMedian worst peak-to-trough fall along the simulated paths, at daily resolution. This is the loss you'd have to sit through — leverage multiplies it, rebalancing into cash trims it.
−55.6%
−49.9%
−43.7%
−37.2%
−30.0%
SharpeReturn per unit of volatility (CAGR ÷ volatility, risk-free rate 0). A rebalanced blend often scores higher than all-in leverage, because it sheds risk faster than return.
0.90
0.94
0.98
1.04
1.12
CalmarReturn per unit of max drawdown (CAGR ÷ max drawdown). A drawdown-based cousin of Sharpe — how much growth you earn for the worst fall you endure.
0.68
0.70
0.72
0.74
0.79
Unlucky (P10)
443K
430K
407K
380K
350K
Lucky (P90)
14.9M
9.7M
6.0M
3.6M
2.0M
Each column is a split between the 2× fund and its plain 1× index (leveraged % / index %), rebalanced yearly. Effective exposure = leveraged share × 2 + index share × 1 (shown under each split); 0/100 is the plain 1× index.
Median growth by strategy
Over 10 years, going 100% into the 2× 0050 — 元大台灣50 fund reaches a median 2.5M; a 50/50 split with the 1× index reaches 1.5M, and the plain 1× index 831K — every column rebalanced yearly.
The cost of leverage is drawdown: 100/0 typically falls 55.6% peak-to-trough, versus 43.7% for the 50/50 split.
Based on 500 simulated paths with daily-reset leverage. A simplified lognormal model, not a forecast: real markets have fatter tails, jumps, and shifting volatility, all of which hit leverage harder. Treat as rough odds, not promises.
What this ticker works out to
Under the prefilled assumptions, going 100% 00675L for 10 years lands at a median value of about 2.5M (≈37.9% annualised) — with a median max drawdown of −55.6% along the way. A 50/50 blend with the plain 1× index comes to about 1.5M with the drawdown cut to −43.7%; skipping leverage entirely (pure 1× index) gives about 831K at −30.0%.
Monte Carlo simulation seeded with the underlying index's 10-year CAGR and estimated volatility. That decade was a strong bull run — shave a few points off the return and look again.
How to read this result
A daily-reset 2× fund's long-run outcome depends on the path: steady uptrends compound beyond 2×, long chop decays (volatility drag). What sets 00675L apart from 00631L is the underlying: the TAIEX spans nearly a thousand listed companies — financials, old economy, mid-caps — more diversified and historically slightly less volatile than the Taiwan 50, and for a daily-reset product a calmer underlying means less decay. Note: the simulator and history replay use 0050 as a proxy for the TAIEX (it covers roughly 70% of its market cap) — directionally right, not identical. The five columns answer "how much?": all-in, blended, or plain 1× — watch the max-drawdown row.
Good fit: wanting whole-market (not just mega-cap) exposure, long horizons, and the genuine ability to watch the position halve without selling — using "some 2× + some 1×/cash" to run exposure between 1× and 2×.
Watch out: 00675L doubles the daily return of the TAIEX *total-return* index — the headline TAIEX in the news is a price index that excludes dividends, so naive comparisons overstate its edge. Futures roll costs, ~0.75% annual fund costs and buying at a premium all pull long-run results away from the naive story; the 0050 proxy also misses the small/mid-cap tail.
Historical replay: backtest with real data
No simulation here — replay real monthly prices from your chosen start to today: initial lump sum + monthly contributions, five splits side by side.
Rebalancing frequency
Data as of 2026-07-06 (Yahoo Finance monthly, 2003-06 → 2026-06).
Replay result 2003-06 → 2026-06
fund / 1×
100/0
00675L
75/25
50/50
25/75
0/100
0050 1×
Final value
13.0M
10.6M
8.0M
5.6M
3.7M
Total invested
238K
238K
238K
238K
238K
Multiple on invested
54.8×
44.6×
33.7×
23.7×
15.4×
Annualised return (IRR)
22.2%
21.0%
19.5%
17.6%
15.2%
Max drawdown
−86.1%
−79.6%
−72.1%
−63.5%
−54.0%
⚠ 160 months in this window use pre-listing synthetic backfill (before 2016-10, shaded on the chart) — replayed from the underlying's real daily returns; method and validation are recorded with the data.
Actual portfolio growth per split
100/075/2550/5025/750/100log scale
The replay uses real (partly synthetic-backfilled) monthly adjusted prices — dividends and splits included; trading costs, taxes and spreads are not. Prices come from Yahoo Finance via automated processing and may contain errors or gaps; synthetic-backfill segments are estimates that can deviate from actual performance, so treat the results as indicative only. Past performance does not predict future returns.
Common questions
- Can you hold 00675L long term?
- Taiwan's forums have argued this for a decade and there's no universal answer — it depends on the market trending up over your horizon and on you sitting through 50%+ drawdowns. Daily reset works for you in sustained uptrends and against you in long chop. The rational frame is sizing, not all-or-nothing: use the five-column comparison above to find the leverage you can actually sleep with.
- 00675L vs 00631L — which one?
- Both are daily 2× Taiwan equity funds; they differ in underlying and cost. 00675L tracks the TAIEX total-return index (whole market, dividends included, more diversified) at ~0.75% total annual costs; 00631L tracks the Taiwan 50 (mega-caps, heavier tech weight) at ~1%. Pick 00675L for leveraged whole-market exposure, 00631L for concentrated large-caps and a longer live track record. Long-run returns are highly correlated — but the fee gap compounds.
- Why does 00675L often beat "2× the market"?
- Two effects stack: it tracks the *total-return* index, while the headline TAIEX everyone quotes is a price index that excludes dividends (Taiwan yields 3–4% a year); and in one-way uptrends, daily-reset compounding pushes returns beyond 2×. In sideways or down years the same mechanics make it *worse* than index-times-two.
- Is 00675L suitable for dollar-cost averaging?
- DCA spreads your entry points, which helps with volatile products — but a daily-2× fund is path-dependent, and in a long sideways market you'd be averaging into something that's steadily decaying. Long-term holders usually focus on position sizing plus periodic rebalancing back to a target 2×/1×-or-cash ratio; DCA is a funding method, not risk control.
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This is a free side project I built in my spare time. If it saved you time or helped you think through a decision, buying me a coffee keeps the lights on!
How much of a leveraged ETF should you hold versus the plain index? Compare 100/0, 75/25, 50/50, 25/75 and 0/100 splits of a 2×/3× fund and its 1× index — all rebalanced yearly — on CAGR, max drawdown, Sharpe and Calmar.
Built by indigo.la.ringo · AppicLab ·
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