2024-06-18 17:20:26 ET
Summary
- ProShares UltraPro QQQ ETF aims to replicate the performance of QQQ by 3x daily, making it risky and volatile.
- Despite the risks, it could be a great option for those seeking substantial capital appreciation through a simple, more hands-on approach to managing TQQQ's inherent risks.
- While there are concerns around sequence risk, beta erosion, and the ability for the fund's wild performance to induce investor mistakes, the upside is too enticing to pass on entirely.
- We cover two strategies you can use to tame TQQQ and make it a valuable part of a total return portfolio.
- We rate TQQQ a 'Buy'.
If you've spent any time in the investing world, it's likely that you've come across the ProShares UltraPro QQQ ETF ( TQQQ ).
Its main goal is to replicate the performance of QQQ by 3x (on a daily basis), which means that it's a highly risky, highly volatile, highly time-dependent wager that most investors don't end up choosing for their long-term portfolios.
However, the long tail returns of buying and holding the instrument are actually quite appealing on a capital appreciation basis, as you can see below:
Read the full article on Seeking Alpha
For further details see:
TQQQ: Two Ways To Tame The Volatility And Capture Far More Upside