DD Support Board and Research Team

[Porgie Tirebiter]

If you want to invest in the NASDAQ 100, you are way better off owning the Invesco QQQ (I do) than you are gambling with the with the ProShares leveraged TQQQ.

QQQ is up approximately 20% from one year ago. So simple logic says the triple return TQQQ should be up 60%?

But no, due to the cost of leverage the TQQQ is up only approximately 12% from a year ago. Even worse are the 3X leveraged bear funds like SQQQ that's lost approximately 50% of it's value from a year ago.

A good rule of thumb is that the more "actively managed" any fund is, the worse it's long term return is likely to be.

If anyone can't get around the paywall, here is that WSJ reporter being interviewed this morning:

https://www.cnbc.com/video/2022/03/28/many-investors-are-still-bullish-on-tech-says-wsjs-banerji.html