For The Bold, This Leveraged ETF Provided Long-Term Rewards

By Todd Shriber, 8/27/20
Leveraged exchange-traded funds are designed to short-term instruments, not long-term, buy-and-hold investments. However, there are examples where traders tempt fate with these products.
What Happened: There are also examples of that strategy paying off, though the cautionary tale is that investors shouldn’t expect this to be the case with regularity. Take the case of the ProShares UltraPro QQQ (TQQQ), which is designed to deliver triple the daily returns of the high-flying NASDAQ-100 Index.
How high flying you ask? The NASDAQ-100 is closing in on doubling status since the end of 2018. Over the past 24 months, the tech-laden benchmark is beating the S&P 500 by a margin of roughly 2.5-to-1.
Why It’s Important: Past performance isn’t a guarantee of future returns, but TQQQ’s history is compelling.
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