By David Kreinces, 6/22/20
Over the past decade, the Nasdaq 100 3x (TQQQ) returned over 43x your money, or 46% annualized. This historic rate of return would have grown $10k to $440k in 10-years. However, the skeptics on Wall Street are still not satisfied.
Nobel Prize-winning physicist Max Planck explained that “Science progresses one funeral at a time.” This means that shocking new truths are resisted, and instead of converting people, new ideas take hold in future generations. Perhaps this explains some of the skepticism around 3x leveraged exchange-traded funds (ETFs).
As for investing, it seems that “finance progresses one index at a time” and people could benefit greatly from catching these changes early. The top equity index has evolved from the Dow 30 (DIA), to the S&P 500 (VOO), and more recently to the Nasdaq 100 (QQQ). So, what’s next?
The advent of leveraged ETFs enables investors to own more of a safer portfolio and this concept is the focus of our new book; “Investable Benchmarks: A Guide to ETFs, Technology, and Leverage.” While these dynamic tools do not always function as expected, and returns can never be guaranteed, there are some leading leveraged asset class ETFs worth considering to enhance investment results.
Contact us today at ETF PM to learn more.