TQQQ beats almost all individual stocks–yet again!


Since the GMI gave a buy signal on 2/28, the QQQ has advanced +8.4% the QLD +17.1% and the TQQQ +26.4%.   The SPY has advanced +7.7%.   If one had purchased the 3X leveraged Nasdaq 100 ETF, TQQQ, at the close on 2/28, one would have done better than all but 7 of the Nasdaq 100 stocks,   and all but 11 of the S&P500 stocks.   None of the Dow 30 stocks beat TQQQ.   So again we see that in a consistent up-trend, buying and holding the leveraged 3X ETF, TQQQ,, was far better and easier than trying to find the rare individual stock that would out-perform it. Are we committed to making money, or to proving that we are smart enough to find the needle in the haystack?

6 thoughts on “TQQQ beats almost all individual stocks–yet again!”

  1. The problem is TQQQ will have much higher volatility than SPY, if you can stomach it. And there’s slippage because it’s 3x, not cubed.

  2. QLD and TQQQ will get a higher return than QQQ, but trading in the former will require a smaller position size because of the leverage involved. So, the percent return may be higher, but the actual cash profit will be about the same. What these leveraged ETFs seem to be doing is performing a similar function as options, which is to achieve a higher return with less capital at risk, but without the significant time decay.

  3. I would use the UPRO for the S&P 500 or the SSO. These leveraged holdings actually work better than a non leveraged ETF as in a strong uptrend (or downtrend) they will compound themselves daily. Now in a choppy market like 2011 they both got eaten alive. Trade smart out there!

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