ETF Battles: TQQQ vs. FNGU - Which High-Octane 3x Technology ETF Wins?
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- Опубліковано 21 чер 2020
- Are you ready to rumble? In this episode of ETF Battles, you'll see an epic face-off between: TQQQ (ProShares UltraPro QQQ) vs. FNGU (MicroSectors +3x Long FANG+ ETN). While both use 3x daily leverage and both track technology stocks, there can only be one winner. Who wins the battle? Ron DeLegge @etfguide referees this bout with guests David Kreinces at ETF Portfolio Management and Mike Akins at ETF Action judging the ETF battle.
Each fund is judged against the other in key categories like cost, exposure strategy, performance and a mystery category. As mentioned earlier, this a historic showdown because it's the first appearance for leveraged ETFs on ETF Battles. #QQQ #TQQQ #ETFBattles
Here's our top 5 investing links:
1. Portfolio Report Card tinyurl.com/yxwmgbum
2. Free ETF Guides tinyurl.com/y2gep5kj
3. Habits of the Investing Greats tinyurl.com/y6cg9n4v
4. Step-by-Step Guide for Protecting Your Assets tinyurl.com/yxm7aup7
5. Index Investing Show tinyurl.com/y3862uaa
Loading the boat on TQQQ on 30% market dip can really set you up.
Nice format and makes things clear thank you guys!
A big thanks, you're making us blush! Don't be a stranger and send us whatever ETF Battle requests you'd like to see.
I would like to see an update with QLD and other leverage ETFs. This was highly entertaining. .Great show.💯✌
Noted! Thanks J-Money for watching #ETFBattles. Season 3 (2022) is just getting started. Be sure to subscribe! Take care, Ron
G O A L S:
A) Hold at least 100 shares of TQQQ, preferably 500 shares or more
B) When it dips 5-10%, sell a put
C) When it advances 15-20%, sell a call
D) When it falls 20%+, buy additional shares and sell a put
E) Light up that cigar periodically
😂
This is not financial advice. Only a thought experiment.
Step 1. Sell cash-secured put on TQQQ two months out at a strike where if you did it 6 times a year, you'd make right around 20% annual return just from premium.
If put expires worthless, repeat step 1.
If put gets exercised, proceed to step 2.
Step 2. Sell covered call against TQQQ two months out at double the strike price of the put in step 1.
If call expires worthless, repeat step 2.
If call gets exercised, go back to step 1.
Invest all gains into shares of TQQQ or really anything else that's less crazy.
Nice comparison, thanks 👏
Thanks for watching!
How about UPRO?
TQQQ vs. UPRO vs. FNGU ?
What head-to-head ETF battles would you like to see? Post your ETF ticker symbols right here in the comment section or on Twitter @ETFguide #ETFBattles
Dave Kreinces is my new hero.....awesome UA-cam channel...very upset I didn’t find this channel earlier!
Renzo: At least you found us before 2021, no? So in that sense you were early. Glad to have you with us! 8-) #ETFBattles
David Kreinces is going to be the biggest name in portfolio management. Watch out, world!
Can you compare HAN ETF Megatrens Global Equal Weight against EQQQ and ARKK ?? Please?
Amazing 👏🙀 shows.. do etf show every week. Maybe stocks weekly annualized which one is going to jump
Semi: FYI, #ETFBattles is already a weekly show and we're currently in Season II. Here's the full playlist and don't forget to subscribe! Take care, Ron ua-cam.com/play/PL2nQqIxm8RGDoEQwGPY3vYk8KDoaWXrkR.html
Been watching TQQQ since it was 80 thinking... Nah...that being said... I'll wait for a sharp correction
Not a bad strategy. PAY-tience!
I bought TQQQ, already fastened my seat belts
What % of your total portfolio ?
@@m.morininvestor9920 25%
@@alexisgc19 monitor it often bro.
@@m.morininvestor9920 yup
Can you please tell me how to invest it would be very helpful 😊
Great information. How about ARKG vs something? Is it a wise investment or just get the ARKK.
Arkg is more speculative for things happening in the future arkk is happening right now and for the future
Also arkk is a combanation of all her etfs
yo this is sick, could u do soxl vs tecl?
Yo, thanks for the sick #ETFBattles request. It's in the mix. Stay tuned.
These Investment products are great if you hold for the long term without margin only cash. And yes if the nasdaq drops by 30% that’s a calculated 90% loss but the loss is only temporary as the markets always come back to equilibrium. So if your a short term investor products like these are dangerous if your long term 10 years plus you’ll be fine 💎
No bro a 3x leverage etf will not rebound it will get dissolved. Granted we'd have to have a bigger recession than 2008 but it's something to keep in mind
@@asspoo5540 Yes precisely. The fund would have to no longer exist for that to happen. However the likelihood of such a event is unlikely. Invest accordingly and don’t add leverage on top of leverage if your thinking long term.
@asspoo5540 unlikely as they rebalance daily and on top of that you have the so called circuit breaker will stop trading if the market drops more than x%
I quant trade tqqq and tecl. Any ideas how I can raise more capital for trading, given that the strategy seems to be working well?
Ideas for raising more capital: 1) Borrow money, 2) Earn more money. Best, Ron P.S. Congrats on what seems to be successful trades.
This show is amazing 💯✌
We concur!
Good basketball analogies in the game, any player without a well rounded set of skills will have limited efficiency. Although avoiding that is the whole point of ETFs which would explain do many ties
I love them
is it possible for leveraged ETF to lose all of its value (wiped out) due to the leverage?
Anything is possible. But since inception 3x leveraged products like TQQQ, TECL and FNGU have survived the storm of severe drops. And in really bad markets where they lose most of their value, they'll typically do a reverse share split vs. retiring to the Bahamas by de-listing the product. Take care, Ron #ETFBattles
@@etfguide haha.. thanks Ron
David Kreinces knows his stuff, and his returns are outstanding. Careful mgmt of geared products is clearly the way to go.
Please compare YINN vs. CWEB.
i invest all my porfolio at 21.67 average of TQQQ i know its risky but its pretty much from the lows of jun
Interesting choice
He said "that's good sauce" hahahaha
😂
Where to put the stop loss on fngu?
At a level that’s suitable to your risk controls. The right number is highly personal
''Experts only...'' ok I'll wait a little more 😅
I prefer FNGU, it seems a good time to buy :)
IYE vs ARKQ. XLY vs UGE
"TQQQ, as is the case with any leveraged ETF, is an instrument best used over intraday time frames, not as a buy-and-hold investment." ... "Investors should monitor their holdings as frequently as daily".
Person if you’re not willing to monitor daily, stay away from these ETFs
@@nodemocrat @person but if you hadn't monitor it daily (just buy and hold) and had bought it in 4/23/2012 your growth would be %3.210,98 // I'm not saying
that it's going to be up the next 10 years... but I don't understand the fear with this instrument... if you're going to buy it short term... that would give me anxiety because the level of volatility SHORT TERM its huge... But in the long term, TQQQ in has shown that it would outperform the market consistently... A deposit in 2012 of 10k would be now 331k
I suppose that’s a fair response. I made $75k between May and the end of August in TQQQ, only to watch that gain disappear entirely by the end of September. I’m now back $77k in gains. My thought is that if the precipitous falls like we had in September reoccur, I would’ve been better off to sell earlier in the month and then buy back in when the market began showing signs of improvement such as was clearly visible in the early weeks of October. Instead of a capital gain of $77k, I might be sitting on 50% more. Your theory of long term investing in it is something no one can argue with; however, you can time the market in some situations. If I had a significant position in it back in March, I would’ve sold immediately to stop the hemorrhaging of losses. Perhaps it’s most prudent to hold a long term position subject to seeing signs of a market downturn- then quickly sell. When you see a pattern of several 4% or more days of losses, it’s time to sell.
@@nodemocrat 77K ? WOU... That's something... I'm from Chile and i'm starting with 2k with positions in QQQ VT SMH (in a mutual fund of ETFs)... Here we don't have brokers that would give you an account at 2k. The mininum its 10k or 20k. Specially if you want to buy more "rare" products like TQQQ. Thanks for sharing your perspective my friend. I agree. It's about understanding the market. Knowing the sentiments. Buy the dip... Thank you again.
@@unviaje3080 That’s troubling to hear that you need that much money to buy into this equity-a true disincentive to investing. I too am in QQQ, but it’s performance is not nearly as good as TQQQ-obviously.
FNGU or TECL?
I did a 15k tester on TQQQ. my plan was to leave it for a year and see how it does.
4 months later and 35% up. I wish I threw real money at it.
Would you wait for a dip to really buy in. Or just buy. It seems to be an an all time high. and I hate to buy that high.
But also feel I am missing out on the steady gains.
We can't provide investment advice. But if you want a complete analysis on your entire portfolio ping me at PortfolioReportCard.com Thanks, Ron
@@etfguidenot asking for official FA. just general opinion on it. If a long hold. does it really matter when you buy in? or does "buy the dip" still matter?
@@donhosbfTQQQ and other 3x bull equity ETFs similar to it generally perform very well during strong uptrending markets. Buying at the wrong time or when the market reverses or is trending down will lead to losses - FAST. Even if a trader or investor has a long-term view, the losses can be quite severe, depending on the magnitude of the correction. That's why many traders keep their 2x and 3x ETFs on a short leash, quickly unloading them if they suffer x % in losses. Nobody can tell you whether you should sell after a 10% decline or some other number...you must determine this for yourself ahead of time. Hope this helps and be sure to subscribe to ETFguide TV, we talk a lot about these types of funds. Best, Ron
Save up and buy the dips. Tqqq hits the 100 day moving avg and shoots back up 25-30%. About three times a year. Look at the year chart , 1 day interval. Buy when hits or drops below 100 day moving average. Backtest and take a look.
@@dcreech500 i did. Last Dip I threw another 100k at it. Besides this Bloody Dec. Its was ripping. I planned to dump and rebuy next dip on Jan 3rd. I couldn't afford anymore CapGains this year. But this Dec bloodbath delayed my plans slightly. Its a great investment. Just have to dump when it reached these fast highs. And wait to rebuy. I think a Long Hold will still work. But can make more dumping and rebuying??🤔
Please capture NRGU versus a similar product in its sector (leveraged energy) in next battle. However, speaking FNGU vs. TQQQ, personally FNGU simply is much better if you can handle risk management.
FYI, FNGU is an "ETN" which means it has credit risk if the issuer (BMO) defaults on its debt. Also, the 2023 bank crisis has heightened the risk of future ETN blowups. This is the reason I favor ETFs over ETNs. Best, Ron
Thoughts on QLD instead?
If you'd like to see QLD in an ETF Battle, please give us the other competing ETF ticker it goes up against. Thank you! Ron
@@etfguide QLD vs TQQQ and QLD vs SSO
I invested my 90% portfolio at about 100 average of FNGU 10 months ago. The lowest price was at 36 this year, but I still had strong confidence to hold my FNGU. Now I got a positive return on this investment. I probably will hold FNGU until the end of 2024. I think it's a good time to invest in FNGU right now. My goal for FNGU is 500, maybe 1,000 :)
If TQQQ is Michael Jordan; I say FNGU is Shohei Ohtani :)
One big strike against FNGU is that it's an ETN, which heightens the risk of the product if the bank or issuer declares bankruptcy or faces a liquidity crisis. Keep that in mind UC. And BTW, I really liked your Michael Jordan/Shohei Otani comparison. See you soon and don't forget to subscribe! Best, Ron
@@etfguide I realized it. Thank you for your information. I appreciate. Looking forward to your show! Best, UC : )
What happens if you hold tqqq long term
Go to Google type tqqq hit the investment tab and see a 10 year period
You get rich
@@rubenl.4275 lmao
Not really....look at it today!!!
With 3X leveraged ETFs, like TQQQ, do you usually buy and sell everyday or do you hold for longer periods?
Hi Josue, there is no definitive answer to your question because it depends on the variable goals of each individual. Although leveraged ETFs aren't designed to be bought and held over the long-term, those who have done it over the past 5-10 years have done very well.
Here's my suggestion: Focus on your goals and what you're trying to accomplish vs. relying on what others do with their investments. That's my advice to you. May profitable results find you. Ron
Enjoyable video to watch. Could have said more about structural differences and accompanying risks of ETNs compared to ETFs though. In this sense it is not even an ETF battle but a ETF vs ETN battle.
Past performances are of course no guarantee for future returns. The American Dream ETF thus might become an American Nightmare ETF during the next 10 years (actually the performance of the last 10 years makes this scenario even more likely).
Ever wondered why all these 3x leveraged ETFs where incepted later than 2009? Because typically they are wiped out of existence in a bubble scenario. Backtesting with historical Nasdaq 100 data reveals that an investment in TQQQ on the peak of the Dotcom Bubble (bursting in 2000) would have suffered a -99.95% drawdown and would have recovered to only 16% of initial seed capital as of today (i.e. ~21 years later) despite the unbelievable strong growth during the last decade.
These kind of products are expert-only territory as mentioned in the video. There is no free lunch with leveraged ETFs and they are certainly not the 'future of investment' for mainstream investors.
Appreciate the thoughtful post Glory Days. The intellect of our audience is rather high and you're proof of that.
@@etfguide thanks Ron highly appreciated.
Just to keep the idea of the American Dream ETF still up:
Backtesting of Nasdaq 100 data from inception in October 1985 until present day reveals a Buy-and-Hold performance of TQQQ of +90,153%. Thats a multiple of 902.53 on your initial investment and corresponds to an annual performance of +21.26%. Still no life cycle but at least tremendous performance over the past 35.31 years.
The actual performance trajectory over time is quite a rollercoaster though as one can imagine. I am eagerly waiting how this plot will evolve over the next >50 years. Will be a joy to watch these ups and downs in continuous fashion.
@@glorydays1565 Good stuff GD. Thank you for doing that incredible back-test. Wow!
@@etfguide it's also interesting to compare FNGU performance to TQQQ not only since the day of inception of FNGU but for the longest available time series the FANG+ Index can be computed retrospectively (Sep 2014):
Performance difference of FNGU (3x NYSE FANG+ Index) vs. TQQQ (3x NASDAQ100) as of 30 Dec 2020
1-year period: +294,58% vs. +94,19%
Since inception of FNGU (Jan 2018): +437,52% vs. 238,85%
Backtested to Sep 2014: +6863% vs. 1203%
Concentration would have definitely payed off during this period.
@@timeflies6347 could still drop another -99% or what do you mean exactly?
Guys love the series and you're adding so much value to your subscribers but please please in the future be responsible and let your viewers know that a 3x leverage etf uses derivatives to achieve this leverage and if we get a heavy market crash the etf will get dissolved and they will lose all their money whereas simply just buying a spy ETF will eventually rebound. Never allocate more than 25 percent imo in a leverage long term retirement ETF as it will be a recipe for disaster. These etfs are better traded in short term if capital preservation is your mainly portfolio goal
Hi Shop: I appreciate your concern and I encourage you to watch our weekly #ETFBattles and other programming with greater consistency. Right now we're in Season II. You'll see that we are responsible and no reminders in this department are needed.
Besides the disclosures, we also do a lot of explaining when it comes to leveraged ETFs, telling viewers about their strengths, weaknesses and general applications.
At the same time, we're neither dogmatically against or for leveraged products - but we take a balanced approach, realizing they do have a place in some portfolios while they won't in others.
Every single thing that is seen and said on this channel is thoughtful and carefully crafted. We're certainty not perfect, but I can promise you we're not sloppy. Thanks for your two-cents, Ron #ETFBattles
respectfully, for the whole ETF to be dissolved seems highly unlikely. Especially a sector like TQQQ (If it was a different sector I would agree). Let's take the most recent crash as an example in March 2020. TQQQ was down 70%! But then recovered and even reached an ATH in 5 months.
@@jaimegamboa7157 I've been tracking sso since 2008 and even then it didn't disolve. So yes highly unlikely but I wouldn't build a retirement fund around it. Markets unpredictable and losing your life savings due to holding a triple leverage ETF with no chance for recovery is a terrible move imo
@@asspoo5540 of course! No one should just venture into just 1 thing. For example, my current plan is to mix TQQQ with something way more stable like VTI, Hold for 10 years, and once I reach my 10 year goal (which would be a 30 year goal without TQQQ) then I plan to rebalance into all low risk ETFs like VTI, or even dividend ETFs. I certainly don’t plan to hold TQQQ only nor hold it forever. I just want to use it to accelerate my shorter term goals
What is needed for the fund to dissolve? I've never heard of it happening. Both FNGU and TQQQ have free falling drastically.and I expect this to continue over the next year. With FNGU at 7 now, what if it falls to 1? What leads to an ETF dissolving?
Please do tqqq vs bulz
Looks like a good matchup. Thank you HammondEggs! Best, Ron
TQQQ > FNGU > ARKW > SOXL > SPXL
FYI, we just did a SOXL vs. TECL matchup. Check it out! #ETFBattles ua-cam.com/video/swBA2pnqRTs/v-deo.html
FNGU has had epic returns over the last year but my fear of it is that as an ETN, there’s a risk of it delisting. Several ETNs have delisted just this year and I think once it delists, it’s no guarantee you’ll be able to sell it. Is this accurate Ron and what are the odds of an ETN delisting?
Over the last 5ys as of June 2024 FNGU has appreciated 4X more than TQQQ
Good point. But as you probably know, FNGU is more concentrated and risky, thus the higher return. On the downside, it's also likely to perform worse vs. a broader index linked ETF. Thanks for watching ETF Battles!
QQQ Vs QQQM, QQQJ Vs ARKK,
Ray: That's a lot of Q's. Got it. #ETFBattles
URTY VS TQQQ
As of right now FNGU beats TQQQ at the price in my opinion
Large returns on Ragu
i have TQQQ for 5 years now and when TSLA split, my tqqq shares doubled in numbers. I hope it will happen again when AMZN and TSLA splits again.
Tqqq has crashed now and pending to go down further. How do you feel?
Sorry but worrying about the cost in these ETFs is stepping over pounds to pick up pennies
How are people so against these funds? If seems like if you invest in this fund for the long term you'll be rich!! Correct me of I'm wrong someone...
...not everyone wants to be rich?! The numbers presented are correct. But as pointed out, leverage in a down market loses you money FAST. It's also more volatility than most people can stomach, that's why almost nobody buys and holds leveraged ETFs through a full market cycle. But the results of long-term investing, even with short-term oriented leveraged ETFs is impressive nonetheless. Our job is to present the facts, the pros and cons...and let you vote with your money. It's our utmost desire that all of our viewers enjoy a profitable outcome.
@@etfguide thank you so much for the clarification. Losing 90% of the value of the stock can be stomach turning though
@@dominicanoloko I believe it dropped 80% at the beginning of the COVID lockdown but even that’s anomalous and it has more than recovered since then
@@Frederick0220 exactly sir. When it drops it freaking DROPS!! but it always recovers...since watching this video I've gotten into SOXL and FNGU and I've made 54% in a few months which is unheard of...let's see how the rest of the ride goes...
@@dominicanoloko That’s awesome, m’dude. If you hold on to these bad boys, you’re gonna make an absolute killing. I recently invested in Bitcoin and I’m gonna invest in TQQQ, TECL, and a couple of the ARKs over the next few months. 54% over a few months really is epic. That’s 3 years for the S&P500!!!