Is using leveraged ETF cheaper than borrowing money and buying regular 1x ETF? Let's assume that we're rebalancing daily and interest rate for borrowing is something like 2.66% (taken from Interactive brokers - benchmark + 1.5%). One such example could be TLT and TMF.
I'd say that using leveraged ETF could be cheaper because they can finance it more effectively using financial derivatives, on the other hand expenses are larger as well. But there are other things like tracking error, etc.