Ever since ETF PM upgraded the investable benchmarks back in 2016, we have been reporting extensively on the incredible opportunity in select leveraged ETFs. Today, we highlight their extraordinary performance in 2019.
Leveraged ETFs
Last year, leading leveraged ETFs returned an astounding 35% to 232%. The 3x ETFs that track long-term Treasuries (TMF) delivered 35%, the S&P 500 3x (UPRO) gained 102%, Nasdaq 100 3x (TQQQ) rose by 134%, and Semiconductor 3x (SOXL) bolted up 232%. In fact, over the past 11 years since inception, Technology 3x (TECL) has delivered well over 60x.
However, investors should be very cautious when using leverage and note that leveraged ETFs do not always work as expected. In fact, Vanguard banned leveraged ETFs in 2019.
At ETF PM, we believe that select leveraged ETFs are extremely valuable investment tools when used properly, with discipline, experience, and extensive risk controls. In fact, in 2019, the 3x investable benchmarks, for growth and aggressive growth investors, returned 67% and 92%, respectively.
ETF PM has long positions in TMF, UPRO, TQQQ, and SOXL.
9 Leveraged ETFs That More Than Doubled in 2019
Sweta Killa, 12/31/19
Wall Street has witnessed a spectacular run this year, braving all the woes including recession fears, geopolitical tensions, U.S.-Sino trade spat and talks of Trump’s impeachment. All the three major indices have hit record highs, with the Dow Jones and the S&P 500 gaining 22% and 28.5%, respectively, while the Nasdaq Composite climbing 36%.
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