Tqqq long term hold. It isn’t better to hold it long-term.

Tqqq long term hold TQQQ rebalances its holdings daily to maintain its increased leverage. ProShares UltraPro QQQ ETF is a leveraged fund that aims to provide three times the daily performance of Nasdaq 100 Index. r/TQQQ A chip A close button. To your point - yes, broad index LETFs are much smarter choices. I'm guessing your idea of "long term hold" might be different from what a professional investor would consider "long term. I decided this strategy at the time I read a paper about long term holding of LETFs that was back testing on a long time frame this strategy, concluding that x2 is quite good compromise for pure naked long term hold(or above MA200). TQQQ did benefit from a very long bull run, but why do all these articles seem to suggest that momentum will vanish. TQQQ has grown in popularity after a decade-long raging bull market for large cap growth stocks and specifically Big Tech. ProShares UltraPro® QQQ seeks daily investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the Nasdaq-100 Index®. Reply reply I have redone the math and seems TQQQ long term would be better even with some hedging cost (like shorting the Russel 2000 as a hedge). with a 90% probability hold a price between $84. " How many decades do you plan to hold TQQQ? Most investors aren't paying attention to the daily movements of their individual holdings. Yes, TQQQ is volatile, but even if you had invested in it right before the 2008 crash, you would have recovered very well from the 90% drawdown. These benefits of portfolio simplicity are too often overlooked. Can you invest in TQQQ long term? 10. The only case that makes sense is if the market truly tanks 30%+ in one day but doubtful that would happen with all of the failsafes built in. The only danger with inverse trackers is that they track % change and are re-balanced every day so in the long term they don't actually track the real behaviour of the underlying index Here's how its total long-term return compares to that of the benchmark Nasdaq-100 index over certain periods of time: Historical Performance of ProShares UltraPro QQQ. On the other hand, the return for TQQQ is 69%. Lets long-term, but again, it all depends on your timeframe and risk tolerance. Hedging with Inverse ETFs:** Consider hedging TQQQ with inverse ETFs like SQQQ, offsetting potential losses if the market declines. I’m going to open up your mind, check out HFEA boggleheads. 26. Sure, nobody can probably predict when to buy or sell. Add a Comment. 3% down buy 5 more. Bascically the difference between the recover of QQQ after a drawdown and the "missing" recovery of TQQQ is the "decay" amount. Dollar-Cost Averaging:** Invest a fixed amount in TQQQ at regular intervals, mitigating the impact of volatility over time. TQQQ is a 3x leveraged ETFfrom ProShares that aims to deliver 3x the daily returns of the NASDAQ 100 Index. TQQQ long-term investing is a powerful approach for those looking to amplify returns by leveraging the power of compounding over extended periods. I wouldn't be averse to holding TQQQ long term, but I would adjust allocation based on recent volatility. Explaining how a leveraged ETF works is beyond the scope of this post, but I delved into th Running an analysis of the buy-and-hold strategy everyday from 2010 to now, TQQQ almost always outperforms the QQQ over long time There are two things: (1) higher expense ratio. In another I day trade it for immediate income In my long term account have sold TQQQ 3 times . Regarding of it is good for long term holding, I am planning to hold for 10-15 years. If everything worked as intended, Youre thinking of leverage. Around mid Feb 8,2020 when it looked like Covid was going to bring the world to an end. 99%. Basically, these are their main two arguments for why not to invest in TQQQ: 1. Every disclaimer says it’s not for long term investing. starting with $1000 and putting in 200 every month. For those saying not to hold leveraged instruments long term, QLD seems optimal compared to both QQQ and TQQQ. 54% compared to ProShares UltraPro QQQ (TQQQ) at 13. Every time someone talks about TQQQ they only have negative things to say and they don't talk about it like regular long term investments. However, Semis are cycle dependent and SOXL return might turn out to be choppy, leaving TQQQ to be the ultimate 3X bull ETF for long term hold. But is it a good investment for a long term hold strategy? Let's dive in. Be it a 200MA strategy, a X% cash/bonds allocation or whatever else. 93 columns? I thought daily gain and overall gain, but I thought you were up far more than 6. Our analysis of TQQQ's previous long-term bottoms indicates that long-term dip buyers had consistently used such opportunities to add Can someone explain if holding a leveraged ETF long-term is worse than holding the QQQ is the Nasdaq, and TQQQ is the 3x Nasdaq. 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. 2x leveraged NASDAQ portfolio would have achieved extreme growth. Using dollar cost averaging can improve the returns of TQQQ significantly over a long period of time compared to lump sum investing. To each their own but I am long on TQQQ and have made a boat load. 27% overall on Generally, QQQ focuses on long-term appreciation with a moderate risk profile. In fact, TQQQ opened on Feb. And if you go back to 1970 it even does give you a higher return because of 2000 from which TQQQ hasn't recovered yet. Old. Today on Dumb Money, we explore a triple leveraged ETF strategy that most "experts" say is crazy. Yes, absolutely. It isn't better to hold it long-term. Now that doesn't mean you can't hold TQQQ long term and profit. I am seeing Morning Star articles that say that these will be taxed short term no matter the holding period. and honestly I think I’m going to hold very long term unless there’s something crazy happening "When there's a follow-through day, if I don't have an individual stock to hold, I will sometimes be 100%," she said. 12%. Pros sell CSPs, DCA into shares long term, and sell CCs. The last decade has looked great for TQQQ, but don't succumb to recency bias. Shorting SQQQ for 1 year may be more cost effective, TQQQ on margin is likely more cost effective for a period of 1 year to 10 years depending on your personal situation and market It's long term performance is extremely good. i am wondering about approaching SOXL from this angle it seems semis are going to rapidly grow as more and more consumer goods will have computer chips in them and the developing world moves towards higher and higher smart-phone adoption. While the 3x is kind of range bound. One thing many point out is that QLD is "expensive" relative to TQQQ, because it has the same MER but for only 2x the leverage. You should do some research and come up with a strategy or mimic another strategy that you like, don't just jump in blind. If QQQ goes up 1. If you can stomach the huge losses during down markets, the long term reward is TQQQ Holdings (ProShares) It's definitely a high-risk, high-potential reward asset. Since 2000 a 2. The last 10 years has been an incredibly favorable 10 year span for the US stock market. Why not hold TQQQ long term? Understand The Risks The most obvious risk comes during a bear market. Its actually just a hair over 1%. Tell us what you think in the comments! Here are the links For years people on subs like this one and others similar subs have said "do not hold TQQQ long term. But does this strategy align with your financial goals? Can you hold TQQQ for a long time without facing too much risk? Let’s explore the critical benefits and key considerations for TQQQ is designed for short-term trading, not long-term investing. Even if the TQQQ rate of return falls by half, to 28% annualized, a $500 investment could still reach $2 million in 34 years. I'm holding for the longterm. TQQQ, QLD, and FNGU for a concentration in the Magnificent 7. Investors who bought TQQQ just after QQQ hit its lowest price in March 2020 and who held it for exactly a single TQQQ's 258% return over a single 12 month period makes it clear why the ETF appeals to long-term investors. Investment opportunities can be found at any hour. But if you are ready to hold for many years without unnecessary worrying, you may do good. i know some here like to buck the common wisdom that LETFs are not viable long-term holds. 98 at the end of this 3-month period. Just my opinion on things, if i buy i initially have the intent to hold forever, i think tech valuations are crazy and wouldnt dare invest, unless it falls to value levels which happens every couple years, i get my dose of it through TQQQ lol. Sold $1,900,000 of TQQQ at the open of Jan. I don't like vt personally, but can see your thought there. But then you have TQQQ which for all we know might look like an uptrend long term, even with today’s price less than the highs while QQQ is at TQQQ ETF Price (NASDAQ), Forecast, Predictions, Stock Analysis and TQQQ News. . This makes it quite the high performing long-term hold if you can avoid being liquidated by black swans. First. I've always seen posts about how unwise it is to hold levered funds long term. You do understand that people can shit on TQQQ but be bullish the market. I know lots of people who hold it and tqqq and TQQQ does not benefit from compounding interest like many ETFs due to daily rebalancing. Can you lose more than you invest in leveraged ETFs? 8. 11, 2010, with a dividend and split adjusted price of $0. Requires vigilant monitoring. Future analysis may also take into account the long term movement of the 3x ETF. QQQ is up more than 67% over the last 16 months and started making new all-time highs again in 3X ETFs such as TQQQ, despite their popularity, have a much higher time-decay in comparison to 2X ETFs. plus you have to pay margin costs to short. TQQQ is very similar to SQQQ, but there is one massive difference. Skip to main content. If I look at my schwab brokerage account, They mark my TQQQ as "Long-Term" just like normal ETFs held for more than 1 yr. It beats a 70% - 90% loss. Get app Get the Reddit app Log In Log in to Reddit. But I look at the ten year chart, and SPXL has indeed grown 3x higher than SPY for the period. There is almost no reason to hold TQQQ for longer than a day unless you are reasonably certain the following day will be a positive one. com/go/tqqq-tmfTQQQ has grown in popularity after a decade-long raging bull market for large cap I don't exactly hold 30% SPXL 30% TQQQ 40% cash position sizes, but under ideal circumstances, I think 30% SPXL 30% TQQQ 1. Is SOXL a good buy right now? 6. If you put in a $100k short and simply hold, the most you can ever make is a little less than $100k. The overlap is nearly zero. Discover why leveraged ETFs, such as the UltraPro QQQ What Happens When You Buy and Hold an ETF Like TQQQ . I also wouldn't buy and hold TQQQ, because leverage decay during a protracted tech crash could lead to an extreme drawdown that They say this stock is a short term hold and too risky as a long term hold. I'd like to invite everyone to change that belief, which I believe is nothing else than a myth. Your buy and hold TQQQ is backtested in one of the best bull markets ever. Back tests show that TQQQ can be held longer term ( 1-Year ) and beats QQQ but holding for too long (5 Years) can significantly worsen performance. However, there are examples where traders tempt fate with these products. 46 and 33. Those who held TQQQ from 2020 or earlier and caught the prior cyclical bull market were more able to withstand that huge drawdown, but Your only solution is to DCA or EDCA. My game plan is quite simple. After all, that long-term chart is still showing massive gains over the last 13 years or so. If you have $100K, what would you do to hold it long term in TQQQ Share Sort by: Best. Compounding losses at three times will quickly erode profits. This example shows us that even when TQQQ perfectly triples the daily performance of the Nasdaq, its long-term growth rate will deviate from the 3X factor. QQQ and TQQQ are exchange-traded funds (ETFs) with similar names that both track the Nasdaq 100 index. I know it can swing largely, but I mean even if it drops 40% which is like over 100%, you still hold the share no? Like people who held from before the pandemic are still better off. If you aren’t planning to hold long term set a buy price you would be ok going in (just to do your research) Long-term value erosion (due to the downside being amplified) is another major issue, which is why I do not recommend to hold TQQQ - or any leveraged ETF, over the long term. This reason alone is why TQQQ should never be an “all in” position. TQQQ and QQQ are both ETFs that track the Nasdaq 100 index. Looking at 5 year chart it doesn’t seem to be an issue and I can digest the day to day wild swings in price action. But there's much, much more than the difference of a single letter between these two funds. . 3% daily crash would lead . A TQQQ/SOXL approach is very risky, I'd personally want some form of risk mitigation. Best. The Long-Term Hold Debate: Is TQQQ Worth the Risk? Holding TQQQ for extended periods requires patience and a deep understanding of its mechanics. The drops in the non-leveraged index are big (let’s say 30%), but it’s still in a long term uptrend. Why do people say TQQQ is not a good long term hold when it’s had pretty good and consistent growth within the past 10 years. There are plenty of excellent resources in their sidebar. I send my 10% VA disability payment every month to M1 Finance, $152 month and it auto invests in TQQQ. I hold it long term, but will sell and go to cash, whether it is a quick drop, or what appears to be a bear market. #personalfinance #investments #etf. Sure, most of them are positive over the longer term, but Risk/reward is the key for long term holds imo, not pure past performance. 12 40 1,402. Whether that holds true going forward is debatable. ly/InvestingStyleQUIZLifestyle Budget - coming soon- SELF-INVESTOR'S Workbook -📑 My Spreadsheets For Do Leveraged ETF: TQQQ vs QQQ5 vs SQQQ - 3x Leveraged ETF, TQQQ Long Term Hold, TQQQ Long Term, ETFsToday, we're diving into the world of leveraged ETFs, specif Can you hold Tqqq long term? Investors Buy And Hold TQQQ Long-term Because Doing So Provided Extremely High Returns During The Tech Bull Market. I'm curious to hear people's thoughts on using 2x leverage if you have a very long horizon 10+ years and continue to DCA. Investors who bought TQQQ just after QQQ hit its lowest price in March 2020 and who held it for exactly a single year achieved a remarkable return, earning 258% on their original investment. I went all in TQQQ. Great analysis and a good example of why more leverage isn't always better. Not sure about long term but I’m making good money off of TQQQ Reply reply As mentioned this isn’t a long term play but more of a swing trade. For example, a 5% underperformance might be a very big deal for an ETF like SPXL which might be expected to only Sure if you want less volatility and smaller (but by no means small) drawdowns than TQQQ, and in exchange for that less potential returns. Instead of buying TQQQ, what if I short SQQQ for long term ? The volatility decay works with you along with a bullish bet. Its current return since inception is 14,329%. I use a risk budget that allocates four times as much risk to the risk assets than the ballast assets, roughly equivalent to a 55/45 UPRO/TMF portfolio long term. That's how I found LETFs, specifically TQQQ. Leveraged ETFs like TQQQ are designed for short-term traders, and their performance over time can be influenced by factors such as volatility decay and compounding effects. And simply continue doing that. That's a total of $198,900 in cash in order to initiate a $100k short of SQQQ and hold it through its worst blow up without getting margin called. His work has since inspired others to get the most out of their long-term investments. It goes up as the Nasdaq-100 goes up. 5%. But they aren't something you can buy and hold over the long term (assuming you aren't adding to your position). Margin rates available today also range from 2% to 7%. Controversial. But TQQQ long term is a bad idea. 2008 is another example as well. I enter and exit based on the 200 day MA on QQQ. Can you lose money on leveraged ETF? 9. AI driven growth is extremely promising and if we hit a decade such as 1990-2000 or 2010-2020 then I'll have ridiculous growth from this portfolio. I will take some losses, but will rebuy shares, when the market seems to be going up steadily again. I think it's great to hold long term, you just have to watch the market, and set a stop loss. Which is another reason I am thinking it is smart to buy and hold TQQQ for the long term. That being said, I have some investors I follow that are EXTREMELY disciplined and they have had it work for them. Ultrapro QQQ 3X ETF etfs funds price quote with latest real-time prices, charts, financials, latest news, technical analysis and opinions. TQQQ is leveraged, so it probably doesn't hold shares and doesn't pay dividends. Dude I'm in the exact position as you, but I hold both tqqq and upro and up 43%. In one I hold it long term. On each respective page is a link to a pie of ETFs for use with M1 Finance. So yes, it is risky to invest in leverages and hold long term. Almost always hedging with bonds and gold will produce significantly higher returns over the long term and you wont have to worry about losing 90%. As a novice investor myself, I'd love to hear some expert opinions on if TQQQ is in fact a wise long-term investment. Long-term Leveraged Investment: Is a leveraged strategy TQQQ – Is It A Good Investment for a Long Term Hold Strategy? QYLD – Avoid This ETF as a Long-Term Investment (A Review) The 9 Best T Bill ETFs (Treasury Bills) To Park Cash in 2025 JEPI ETF Review – JPMorgan You'll often hear it's not a good long term investment because of the risk in a crash, butI look at the history of the ETF and it absolutely seems like a good long term investment. 42. Top. It's not intended for long term buy and hold, though there are certainly strategies that work (I use it that way). Reply reply ImJustBME I combine qqqm and SCHD for long term holdings and lower volatility. The problem with long term holding and attempting to own millions worth of shares, is knowing that sometime there is a possibility of your million dollar position dropping straight to $250k in a month and then you are years away from getting back to highs again. As you extend the period out the more probability drops off to the point you are only ahead if you perfectly time the market. 47 and $106. Read what investors should know about TQQQ here. It’s basically gambling when you hold for these shorter times. Given this extraordinary long-term growth potential, we named TQQQ the “American Dream ETF. • QQQ is perhaps best-suited as a long-term investment for those who want broad exposure to the Nasdaq-100 Index. Long-term holders sat through an 80% drawdown in 2022 and need another 80% gain just to get back to the prior highs. 88% expense ratio is fair for its speculative nature but adds to the long-term underperformance risk. I’ve held this long term and short term. Only jabronis suggest NOT to hold long term. Similar in objective to the TQQQ/TMF strategy TQQQ's 0. "I'm Will you guarantee our losses if we aren't up 10000% long term? Show us your position first if you demand those against TQQQ show their shorts. 2002 doesn't even matter because the Nasdaq 100 is fundamentally different in how it functions. The fund's leverage is reset daily, which would lead to significant tracking errors over longer periods, especially in volatile It just looks like a mean reverting index, almost like VIX. You have to give up the money you lost and gain profits on the fact that things have dropped to a fraction of a dollar. 5% but its not. TQQQ is best for experienced traders and short-term speculators; long-term investors Get the portfolio discussed here: https://optimizedportfolio. In a bear market, holding TQQQ would be quite painful. 100% TQQQ long term hold strategy I have been searching and reading here and many other places along the lines of what I am laying out in this post and I really have not found a compelling argument against this strategy. I closed out my position. My plan would be to add this to my weekly investments, by dropping in lets say another $100 a week into something like TQQQ. While I usually agree you shouldn’t hold leveraged etfs, I think TQQQ and the I know it could go under if the S&P falls over 33% in one day. I may hold TQQQ 70-80% of the time, but nowhere near 100%. Many will trade or try to time TQQQ. TQQQ is often quoted. I’ll hold each for the long-term. They may not be suitable for long-term holding. After 35 years, TQQQ and QLD are basically the same and it's clearly very risky to hold TQQQ long term in the case of a recession or serious downturn. Leveraged exchange-traded funds are designed to short-term instruments, not long-term, buy-and-hold investments. This is generally why these ETFs aren't recommended as long term investments but rather as short term trading vehicles. Therefore, if you have additional funds, it is advisable to invest in and hold QQQ. TQQQ is same but for NASDAQ100 SOXL is also same but for Semis It is often emphasized that Tech is here to stay, making TQQQ and SOXL lucrative compared to UPRO. TQQQ avg including several 50%+ drops last 10 years: 20%+ QQQ is now at 100, but TQQQ is at about 48 So even tho QQQ recovered, TQQQ is still at a loss, it "decayed" roughly 50% Extrapolate this example to daily rebalancing over a long period of time. I could see holding a 3x as part of a portfolio, If you hold 1/3 of your portfolio in TQQQ, and 2/3 in cash equivalents, do y'all think holding 80% QLD long term with only 20% TQQQ is safer than all in on tqqq while adding money biweekly for 20 years? If you hold TQQQ for the long term 5,10,15 years what are the down sides? Other then huge swing in volatility. TQQQ, a 3x leveraged ETF of QQQ (NASDAQ-100), provides great reward at great risk. You need a long term treasury hedge like TMF. Discover why leveraged ETFs, such as the UltraPro QQQ (TQQQ), are designed to lose money over the long term, and discover who should consider buying them. You still hold many of the same stocks, but with better diversification. That has absolutely nothing to do with dividends. SOXL is WAY too volatile to be profitable on a I'm doing long term buy and hold. The primary argument against it seems to be that 1. 2024 Furthermore, the TQQQ is also at its long-term bottom. - FREE Workbooks -Investing Style QUIZ - https://bit. You'd think TQQQ being 3x leveraged the return would be 10. They make it sound like TQQQ is only for professionals because another dot com crash is right over the horizon. 200 I hold TQQQ in two accounts. This is why the academics and the creators of TQQQ all concur 3x leveraged ETFs are not good long term holds. What's your opinion on this? thegasmaster wrote: Thu Jun 02, 2022 2:28 pm I use TQQQ as my play casino investment. TQQQ will underperform QQQ if the average rate of return of QQQ is low enough (like 8% from some research I’ve seen), so you’re betting on QQQ averaging a double digit rate of return by holding it long term. Like they could invest in other stuff versus a triple leverage ETF which even says in it's prospects that is a trading vehicle. ” " It's basically the Holy Grail to grow your wealth, and it's a risk I'm willing to take. QQQ is better suited to long-term investors whereas TQQQ is more for short holds and day traders. Below is an ever-evolving list of lazy portfolios, with links to my usually-brief analysis/review of each. The opinions are mostly from short term I hold about 50k of TQQQ currently. 0 and vice versa. As I'm writing this I see QQQ is up about 3. Active managers want your money - our advice: keep it! How? Investing in broad-market low-cost indexes, diversified between equities and fixed income. Topic Author. 5% SQQQ and 37% cash sounds good for a long term investment Should I hold TQQQ long term? Conclusion. Jack founded Vanguard and pioneered indexed mutual funds. As long as its DCA youll get way more units per dollar if we crash, i only put $150 a month currently. 2%; TQQQ has 0. Edit: I read this as 2022. QQQ is a more typical ETF whose goal is to match the performance of the Nasdaq over time. Why can't I hold TQQQ long term? It's up like 17,000% since its inception. There are quite literally zero backtests starting with $1000 and putting in 200 every month. Personally, I could not allow myself to hold a long LETF through a Depending on your personal situation (Short Term Capital Gains) minus (Long Term Capital Gains) ranges from 10% to 20%. Can you hold leveraged ETF long-term? 4. You can see from their long range charts they easily out preform market averages. Why on Earth would someone do that (hold TQQQ position for 15 months) is beyond me, but when you liquidate it your gain (or, more likely, loss) will be long term. I have 2000+ shares long term. QQQ has 0. So far nobody’s really answered this question but was wondering if I can hold BITX long term while using DCA? TQQQ should be even also or close, nope -TQQQ = --46%, thats math decay. it's not unreasonable to hold long term. 3. Any leveraged ETF such as TQQQ, which seeks to return 3x the daily performance of the NASDAQ-100 (a subset of the broader NASDAQ Composite), is subject to something called volatility drag. So 55% UPRO and 45% TMF had the best outcome for back testing over the last 40sh years. Just need to be willing to hold on if it crashes knowing it'll recover in time. (Ignoring the cost to borrow, and assuming you never get margin called, My portfolio current is 100% TQQQ with no margin. The past results are clear. Some people will say not to hold TQQQ for a long time because they think that it's has the problem that some other leveraged funds have - erosion. Very long-term investing: QQQ or TQQQ His work has since inspired others to get the most out of their long-term stock and bond investments by indexing. With a leveraged ETF, on top of the asset management fees, You might not yet be convinced of the danger of holding TQQQ over the long term. In a bull market, TQQQ can outperform almost everything else. " Well, if you had bought TQQQ in 2011 and held until December 2021 you would have over $100,000. Plus the volatility most people can’t stomach. For reference, long-term returns on SOXX are ~11% and volatility is ~33%. Hopefully your post will settle some debate but there will always be people with anchoring bias that decay/long-term hold is somehow bad. As such, they're perfect for the long-term buy-and-hold investor who wants to be hands-off. In fact, since stocks will almost certainly go up in 30, 20, or even 10 years, shouldn’t long-term investors all invest in a leveraged ETF instead? The answer is a resounding NO. Because 69% is greater than 63% (21%*3), TQQQ’s overall return for these two days is in fact more than 3 times the return of the Nasdaq. Just curious if there's anything wrong with going 100% UPRO (or TQQQ) in this dip, if I plan to be a very long term holder. 1% down, buy another 5 more and on and on. If you are planning to keep any lesser than 2-3 years you may not get good returns. Genuine question - long term TQQQ VS QQQ . It is a very small part of my overall asset allocation, and has replaced my playing around in crypto. But compared to any other ETF in a long term strategy, TQQQ would provide the best return in the long run. At no additional cost to you, if you choo Long Term Hold I’m accumulating TQQQ a bit everyday but kinda worried about so many voices talking about decay overtime. This simple strategy turned $10,000 into over $230,000!!! This approach capitalizes on the long-term growth of the technology sector, TQQQ can substantially lower portfolio risk and preserve buying power when maintaining a ratio of 1:5 TQQQ:Cash buy and hold. "I'm not (taking positions in TQQQ) to hold it longer term," she said. Compare TQQq qqq and Qld and Sso spy and upro on Google finance on the five year you could see how the triple leverage after this years fall got burnt by the decay Reply reply SSO is my long term plan to hold after I gamble my way to 6 figures in my Roth Reply reply TQQQ buy and hold would have lost 82%. New. Presumably, the higher expense ratio is spent on leveraging, and (2) higher risk and higher reward. Long term hold strategy . My optimism towards technology and QQQ's long-term returns prompts me to question the potential hidden costs associated with TQQQ. But it takes charting, patience, DCA for both bull and bear, as well as being brave enough to pull the trigger when it doesn't work. , if you hold TQQQ, a 33. The biggest risk is a sideways choppy market. But because TQQQ uses options to achieve this goal (EACH DAY, not long term) there is something called theta decay. Tell me why I shouldn’t buy and hold for 20 years. I'm already convinced that leverage is good for long-term holding, but am debating between investing in 2x vs 3x ETFs. Buy, hold, pay low fees, and stay the course! Most ETFs are designed for long-term ‘buy and hold’ strategies — they are excellent This compounding effect is such that the TQQQ — the Nasdaq 3x leveraged ETF — didn’t just LONG-TERM BUY AND HOLD STRATEGY STILL WORKS WELL AT LEAST NOW AND UNTIL THE END OF 2026. It can be held long term when the underlying asset QQQ is in a strong bull market like over the last decade. Over time, options become worth less money (oversimplifying). However, TQQQ and a couple of others (UPRO comes to mind) are exceptions. See why I rate TQQQ fund a hold. Investors Buy And Hold TQQQ Long-term Because Doing So Provided Extremely High Returns During The Tech Bull Market. • TQQQ is built for short-holding periods and is best suited for day traders. A break-up through the long-term average will give another buy signal, For example, compare QQQ and TQQQ price changes from early May 2022 to today. That's volatility decay. Plan on buying more if it keeps dropping, and adding more periodically in general, and holding long term. Buy every, single, dip. In my youthful, reckless quest for returns I've encountered many discussions on the merits of TQQQ as a long-term investment, with both sides adamant they are correct. Obviously you probably don't want to hold 100% TQQQ and common advice is to put in 10% of your income. 85% over the last 10 years, with other durations also good. OP said their time horizon was 30 years, so in my book that qualifies as long term, so my approach is to look at it from here on out, and not necessarily 30 years back, In an optimistic case TQQQ will vastly outperform raw 3x leverage on a buy-in unless you're rebalancing daily. Don't go all in and don't buy and hold TQQQ – or any leveraged stocks ETF – “naked” for the long term without a hedge of some sort, because sometimes they simply can't recover from major drawdowns. This strategy has just one rule: buy and hold TQQQ. Disclosure: Some of the links on this page are referral links. Trading Ideas; Tools. As you see from the chart, it can be challenging but the general uptrend in the Nasdaq has made holding TQQQ for the long term very attractive. Reply reply fugoogletwitter • I Is TQQQ something to hold long term? upvotes TQQQ has done remarkably well on a long-term horizon, using a buy-and-hold approach, Most SA authors here do not beat the market while TQQQ held long term beaten the SP500 by large multiples. Open comment sort options. I'm going to guess that simply writing r/bogleheads isn't going to work very well for you either, but there it is just in case. So it's not about return , it's about giving you the confidence to hold long term and through market crashes and minimize large drawdowns. So why doesn’t this work? It seems to work. How long should you hold an inverse ETF? 7. Can you hold Tqqq for a year? Investors Buy And Hold TQQQ Long-term Because Doing So Provided Extremely High Returns During The Tech Bull Market. I'm not sure there's really any advantage to selling sqqq over buying tqqq in the long term. Open menu Open navigation Go to Reddit Home. Hi, I am planning to enter VOO (75%) and QQQ (25%) and I intend to hold them for a very long time (30 years). Unlike QQQ, which you can buy and hold for a long time, TQQQ is designed for only shorter investment timeframes. Why you shouldn't hold TQQQ long-term? 5. 2 extreme drops in ~10 years will cause you to perform worse than the market. I would only recommend holding TQQQ long term with a DCA strategy to investors with the absolute highest level of risk tolerance and only invest money they can afford to see fall over 90% at times and in amounts that are not needed for many It's why something like SSO or UPRO is safer for a longer term buy and hold than TQQQ is. You can mayyyyyybe survive 1 extreme drop. I would plan to be a long-term holder who never sells until retirement (after multiple decades). For me the biggest risk is not losing money hold TQQQ long term. But I never just buy & hold. It isn’t better to hold it long-term. Active managers want your money - our advice: keep it! Prior to that I consistently held some TQQQ since 2019. Long term buy and hold- bad call. I does get slammed heavily when the market trends down. TQQQ FTLT logic would have lost 52%. Don’t hold it long term for anything more than your “play money”, which for those that even allow for “play money” in their IPS is no more than 5%. Basically, SP500 x3 and bonds x3 would be your long term leveraged portfolio. $10,000 in QQQ in 2011 if held without selling would be $86,000. Why should you not hold leveraged ETFs overnight? 11. In the QQQ, which tracks NASDAQ 100 stocks, has led the bull market in 2023–2024 as technology stocks have done especially well. 5%SPXS and 1. Look at the long term charts of TQQQ and consider the chances of sudden big drawdowns. Q&A. Leveraged etfs have a decay factor in the holdings if you hold long term typically by the way they are constructed. Running the wheel on it and SPXL as well, while holding the shares. Since few months I decided to buy now only HFEA in a taxable in addition « to diversify » my strategies. Do $10,000 in TQQQ in 2011if held without selling would be $700,000 today. 5-10 years is just getting started with passive equity investing, many people design their portfolio as something they intend to hold well into retirement. Reply reply I’m doing it starting today so I’ll let you know. How long can you hold TQQQ? TQQQ, a 3x leveraged ETF of QQQ (NASDAQ-100), provides great reward at great risk. 2. Effective for risk-tolerant long-term investors. Most of the people explained the technical things, you can also find everything online. Theoretically could happen though. I would recommend not holding a leveraged ETF if I’m speaking a foreign language ProShares UltraPro® QQQ seeks daily investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the Nasdaq-100 Index®. You can. It’s a two way sword though. TQQQ is a leveraged ETF, meaning it aims to triple the daily returns of the Nasdaq. Also, it's almost guaranteed we are close to the bottom for TMF as the rate hikes are nearly over. g. A discussion would be nice. Yes. Obviously you probably don't want to hold What is the big problem with holding LETF's long term? I've held TQQQ since April, 2017 but at one point shifted to a blend of Given, all that, I still love QLD & TQQQ. More volatility bigger decays. I don't think you're understanding the logic checks in TQQQ for the long term. 0, TQQQ goes up 3. Lets say both QQQ and TQQQ have a stock price of $100. If I bought one share of TQQQ everytime somebody said not to buy a share of TQQQ for long term, I would have been a millionaire by now. In my opinion its an amazing long term swing trade but not a forever buy and hold due to the inherent risk of leveraged etfs in a bear or sidewise market. Looking at one bad a year for a reason not to hold something isn't really smart IMO. When an expert talks about long-term they are talking about adding something to I know that most of us have heard, over and over, that TQQQ is not a good long-term investment. They meant as trading vehicles rather than longterm holdings. To the OP, no matter what you read, no matter what you know or what you feel, understand this: life itself is one big gamble. The upshot is that there is nothing wrong of holding a leveraged ETF for the long term as long as a) you can tolerate the risk of total loss (e. My feeling is if you cant time the market, you sure as hell cannot time a leveraged fund. They require market timing and/or frequent contribution to be a good long term strat. Leveraged ETFs are designed for short-term Add fees stuff makes holding over long periods a difficult thing to hold over long periods. Reply reply Apprehensive_Ad_4020 That’s why it has higher volatility of 22. uddlxg iluq tewudcf yrykxc cclldx htxvt jinpf xisz rtdt wewqj