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Asset Class: Trading – Leveraged Equity
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Oldest ETF back tested: ProShares Ultra QQQ (QLD)
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Correlation to US Stock Market: 0.92
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Long-Term Performance: 21.18% CAGR
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S&P 500 Performance: 9.34% CAGR
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Back test timeframe: July 2006 – March 2023
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Number of ETFs available in this asset class: 118
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Number of 2X Leveraged ETFs in this asset class that are 10-years old or older: 28
WARNING! Leveraged ETFs are high risk, complex financial instruments. Please do not trade or invest in any leveraged product until you thoroughly understand the risks involved. Additionally, all but 10 of the 28 ETFs researched in this article failed to outperform a non-leveraged S&P 500 index fund; meaning that most of these products are simply not worth the risk of holding them for longer than a day or so. They are intended to be used as trading vehicles, not long-term investment vehicles. Buyer beware!
QLD vs SPY: July 2006 – March 2023
QLD vs SPY: June 21, 2006 – April 6, 2023
The Deep Value ETF Accumulator rankings for the 28 oldest Trading – Leveraged Equity ETFs (2X only):
The 5 top ranked Trading – Leveraged Equity ETFs head-to-head comparisons (2X only):
QLD vs ROM vs RXL vs USD vs UGE: March 2007 – March 2023
QLD vs ROM vs RXL vs USD vs UGE: February 1, 2007 – April 6, 2023
Stated objectives of the 5 top ranked Trading – Leveraged Equity ETFs:
QLD – ProShares Ultra QQQ seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Nasdaq-100 Index®. Seeking magnified gains (will also magnify losses). Getting a target level of exposure for less cash. Overweighting a market segment without additional cash.
ROM – ProShares Ultra Technology seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the S&P Technology Select Sector Index. Seeking magnified gains (will also magnify losses). Getting a target level of exposure for less cash. Overweighting a market segment without additional cash.
RXL – ProShares Ultra Health Care seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the S&P Health Care Select Sector Index. Seeking magnified gains (will also magnify losses). Getting a target level of exposure for less cash. Overweighting a market segment without additional cash.
USD – ProShares Ultra Semiconductors seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Dow Jones U.S. SemiconductorsSM Index. Seeking magnified gains (will also magnify losses). Getting a target level of exposure for less cash. Overweighting a market segment without additional cash.
UGE – ProShares Ultra Consumer Staples seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the S&P Consumer Staples Select Sector Index. Seeking magnified gains (will also magnify losses). Getting a target level of exposure for less cash. Overweighting a market segment without additional cash.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on Trading – Leveraged Equity ETFs:
4 Best Trading – Leveraged Equity ETFs to Own Long-Term (2X Only) 1.5
Disclosure: We currently own shares of QLD & RXL. We intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.