ProShares ETFs (ProShares Trust and ProShares Trust II) are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor. As I noted in the post, I downloaded the historical returns data of the index to create my own simulation data and then uploaded that to PV as a custom data series. The slope gives the true leverage L=2.949 . Those additional shares also lead to real money. Look forward to reading more. We've maintained some version of a stock return calculator for some time now. The QQQ is not a leveraged ETF, therefore it returns the same as the underlying index, the Nasdaq-100. Todd Shriber is the ETF editor at Benzinga. Holding TQQQ through the Dotcom crash would have seen a near-100% drawdown. VOO vs. VTI Vanguard S&P 500 or Total Stock Market ETF? Required fields are marked *. Great insight. Yet fewer can rival. Holdings are subject to change. TQQQ is one of the largest leveraged ETFs that also tracks the Nasdaq-100. TQQQ : 22.24 (+2.16%) PSQ : 13.37 (-0.67%) QID : 21.12 (-1.45%) QLD : 41.87 (+1.48%) QQQM : 120.93 (+0.73%) QQQE : 69.20 (+0.92%) QQQJ : 25.25 (+0.16%) QQQX : 23.16 (+1.00%) Nasdaq100 (NQ) Nearing Weekly Chart Descending Wedge Resistance Tradable Patterns - Mon Jan 16, 10:01PM CST Investing in these types of exchange-traded products (ETPs) involves heightened risks, including higher margin requirements, leverage, derivatives, and complex investment strategies. An online SIP calculator predicts the returns on your SIP based on specific parameters. Amanda Jackson has expertise in personal finance, investing, and social services. I love your writing. Thanks alot. Todd has a bachelor's degree in broadcast journalism from Texas Christian University. For significant requests, please make a contracting inquiry. Amount of capital. ProShares UltraPro QQQ advanced ETF charts by MarketWatch. for reasons of supervisoryespecially saleslaw). Iron Condors [Long Inner, Short Outer] Iron Condors [Short Inner, Long Outer] Volatility. Consistent_Client_38 1 yr. ago. The TQQQ is triple-leveraged, so that it returns 3x the index. Im still baffled as to how you can see the returns for HFEA and the 60/40 TQQQ/TMF portfolio and still only have 10% of your total portfolio allocated to HFEA. In 2022, the ETF granted a 0.54% dividend yield. Total Return Month-End Total Returns as of 1/31/2023 Quarter-End Total Returns as of 12/31/2022 VIX futures are an insurance policy that isnt worth the premium in my opinion. Your allocation is now 55/45, so you would need to rebalance selling TQQQ and buying TMF to get back to your target 50/50 allocation. Also, theres no reason to expect interest rates to rise just because they are low. for example since its down like 70% ytd it would need 233% gain to make up for it? Additional Contribution. If you set it to 0. As such, it does not actually hold the shares of any companies. ETFs (and mutual funds) are the most common ways to track an index, although they include fees and slow down dividend timing. The performance quoted represents past performance and does not guarantee future results. Dont succumb to recency bias and outcome bias. On the other. YTD Total Return 32.5%. This and other information can be found in their summary and full prospectuses. Do your own due diligence. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small-capitalization securities, and commodities. 3rd Party Research Disclosure /public-10:57:25. T_n=T_1\prod_{i=2}^{n} (1+r_{i,i-1}L)(1-E) Investing involves risk, including the possible loss of principal. This means if the Nasdaq goes up by 1% today, TQQQ should go up by 3%. ProShares have not been passed on by Nasdaq OMX or its affiliates as to their legality or suitability. Our tax return calculator will estimate your refund and account for which credits are refundable and which are nonrefundable. 10 Oversold ETFs. Your email address will not be published. Therefore, back-testing with the non-linear method could give an investor more risk cushion. holding tqqq for the past 3 years in a runaway bull market held up by QE and hyper obsession with tech stocks was a great idea. Thanks for your time. Log in to see them here or sign up to get started. On this page is an ETF return calculator and CEF return calculator which automatically computes total return including reinvested dividends. The tool is for informational purposes only. These cookies will be stored in your browser only with your consent. Since the 45 put is OTM, the stock is not protected until it drops below $45 per share. The total The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. The index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization. This category only includes cookies that ensures basic functionalities and security features of the website. Leveraged ETFs often come with higher expense ratios because of higher management fees. See the full list here. Basically, it can take too long for the leveraged ETF to recover after a major crash. When the market goes down, it hits the price harder on the nonlinear model. The graph above illustrates in theory why a 100% TQQQ position is not a good investment for a long term hold strategy. Its unlikely that any of the following will improve the total return of a strategy like this, and whether or not theyll improve risk-adjusted return is up for debate, but those concerned about inflation, rising rates, volatility, drawdowns, etc., and/or TMFs future ability to adequately serve as an insurance parachute, may want to diversify a bit with some of the following options: The backtests above buy and hold TQQQ with a starting balance of $10,000 and no additional deposits. Fund detail sections, Quarter-End Total Returns as of 12/31/2022. Dollar cost averaging is our preferred normal style of investing, where you invest on a regular basis. Index information does not reflect any management fees, transaction costs or expenses. So how can we make it work? TQQQ is a 3x leveraged ETF from ProShares that aims to deliver 3x the daily returns of the NASDAQ 100 Index. Ultrapro QQQ 3X ETF (TQQQ) Alerts Watch Help Go To: The Moving Average is the average price of the security or contact for the Period shown. 52 Few funds in history can rival the returns of ProShares UltraPro QQQ, a $7 billion exchange-traded fund that seeks to triple the daily performance of the Nasdaq 100 index. Here's a look at QQQ with SQQQ overlaid on the 5-minute chart: You'll notice that SQQQ (the blue line) amplifies the inverse of QQQ's daily returns. The ProShares UltraPro Short QQQ (SQQQ) is a 3x leveraged inverse ETF that tracks the Nasdaq 100. The highly-rated, large-cap fund was first established in 1999 and works to return results that follow the Nasdaq-100 Index and has a gross expense ratio of 0.20%. According to ProSharesthe largest issuer of leveraged ETFs, leveraged ETFs come with additional risks and nuances not found in traditional ETFs. In short, volatility decay is not as big of a deal as its made out to be, and we would expect the enhanced returns to overcome any volatility drag and fees. Really enjoyed reading your article. QQQ, on the other hand, experienced lows of only about 27%. Cumulative Returns Annualized Returns; Rank 2023 YTD For information about this ETFs fees, please see above. This options determines the status of the player. If adjusted, sales charges would reduce the performance quoted. Tech stocks account for the majority of QQQ's weight, with consumer discretionary and communication services names representing another chunk of the ETF's roster. This idea is also extended with other assets like gold in my leveraged All Weather Portfolio. The non-line regression method is also more conservative. Analytical and entrepreneurial-minded data nerd, usability enthusiast, Boglehead, and Oxford comma advocate. Im particularly interested in the treasury bonds data: the ETF with oldest data that I can find is TLT, but it only dates back to 2003, after the dotcom bubble. Total Return Month-End Total Returns as of 1/31/2023 Quarter-End Total Returns as of 12/31/2022 For those who believe that the Nasdaq will spike in the short run, the TQQQ may be a better option since it provides leverage. OptimizedPortfolio.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); Sign up to receive email updates when a new post is published. The widely adopted method is to apply the fixed 3x leverage to the daily returns (close to close prices) of the benchmark ETF QQQ. Copyright 2023 MarketWatch, Inc. All rights reserved. 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. My overall portfolio is about 66% TQQQ. Thanks Joey! Moreover, a decade especially one without a major crash is a terribly short amount of time in investing from which to draw any sort of meaningful conclusions. Your email address will not be published. If we relax the 3x leverage and let it take a different value (but still a constant through the entire time window, the enormous price difference of TQQQ between the beginning and the end of the time window can spread out to daily prices. Data is provided for information purposes only and is not intended for trading purposes. These include white papers, government data, original reporting, and interviews with industry experts. the returns were adjusted to include sales charges, the quoted performance would be All leveraged ETPs are ineligible for use of day trading buying power. For example, to calculate the return rate needed to reach an investment goal with particular inputs, click the 'Return Rate' tab. Subscriber Agreement & Terms of Use | 3 Yr Annualized Total Return -1.2%. The minimization is done with respect to the leverage and the daily expense ratio. Heres a link for the M1 pie for 60/40 TQQQ/TMF. When you buy VTI or DIA, don't only look at the price return on your fund. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. ProShares now offers one of the largest lineups of ETFs, with more than $60 billion in assets. We cannot warrant any results. New bonds bought by a bond index fund in a rising rate environment will be bought at the higher rate, while old ones at the previous lower rate are sold off. Market price returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. Think of it as a parachute insurance policy that bails you out in stock crashes. Taxable income $87,050. How It Works & How to Invest in It, How To Invest in an Index Fund The Best Index Funds, Portfolio Diversification How To Diversify Your Portfolio, Dollar Cost Averaging vs. Weve had several periods of rising interest rates where long bonds delivered a positive return: From 1992-2000, interest rates rose by about 3% and long treasury bonds returned about 9% annualized for the period. This calculator can use data dating back to the first trading month of 2010 February, so it will definitely show you the power (and sometimes maybe weakness) of the DCA strategy. At the peak of the coronavirus's impact on the stock market in March of 2020, for instance, TQQQ fell almost 70% from recent highs. Thus, if the Nasdaq-100 rises 1%, the TQQQ returns +3%; if it falls by 1%, the TQQQ loses 3%. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the fund's investment objective. Gain from Investment - Cost of Investment. No I would not use 5x. A "single day" is measured from the time the Fund calculates its net asset value (NAV) to the time of the Fund's next. Create a list of the investments you want to track. Ill briefly address and hopefully quell these concerns below. We use cookies to give you the best experience when visiting our website. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Still at least for ETFs that pay dividends we often see returns quoted out of context. If the Nasdaq-100 moves by 1%, TQQQ moves by 3%. The triple-Q was previously called QQQQ. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Include the fund with the issue so I can debug it. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. Specifically TQQQ. People tend to focus on volatility decay and forget that major drawdowns are actually the bigger concern here. I suspect the difference is small, but not knowing is really bothering me. Im doing very well, with average cost per share well below $10, thank you. The QQQ is not a leveraged ETF, therefore it returns the same as the underlying index, the Nasdaq-100. Dividends make up a huge amount of return when you trace them back over a long enough timeframe. "When Performance Matters: Nasdaq-100 vs. S&P 500: Second Quarter '20.". Basically, these funds provide enhanced exposure without additional capital by using debt and swaps. On this page, you will find the dollar-cost averaging calculator for ProShares UltraPro QQQ (TQQQ) stock. Last Updated: January 21, 2023 121 Comments 10 min. If dividends and periodic investments would have occurred on the same day, those calculations are independent. The tool uses the Tiingo API for price and dividend data. To make the logic simple, we invest(the next legal market day) 1, 7, 30, or 365 days after the previous investment respective to your time frame choice. ProShares may invest in financial instruments (including derivatives) that, in combination, should have daily price return characteristics similar to the fund's benchmark. Seeking magnified gains (will also magnify losses), Getting a target level of exposure for less cash, Overweighting a market segment without additional cash, You may order paper copies by contacting ProShares Client Services at 866-PRO-5125 (866-776-5125). 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. The Index includes 100 of the largest. Question: would this also apply to SOXL? Past performance does not guarantee future returns. You can learn more about the standards we follow in producing accurate, unbiased content in our. Stock Calculator. Generate graph from spreadsheet or upload to PV as a custom data series. It seeks to return the exact results of the Nasdaq 100 index times negative three. Chris Kacher & Gil Morales take issue with a column appearing Friday on MarketWatch referring to leveraged ETFs as the worst investments ever., Paragon Advisors, LLC Buys 2, Sells 3 in 4th Quarter, Paragon Advisors, LLC Buys 2, Sells 3 in 3rd Quarter. The Investment Calculator can be used to calculate a specific parameter for an investment plan. If you keep loading up on it little by little, especially right now. This is not financial advice, investing advice, or tax advice. Indexes are unmanaged, and one cannot invest directly in an index. TQQQ Is TQQQ A Good Investment for a Long Term Hold Strategy? Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). This is mainly because this simple model ignores the tracking errors of TQQQ of QQQ. The Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization. Bonds only suffer from rising interest rates when those rates are rising. I lead the Paid Search marketing efforts at Gild Group. Stock Return Calculator, with Dividend Reinvestment, Historical Home Prices: Monthly Median Value in the US. The $158.3 billion QQQ (as of July 2022) is over 20 years old and is one of the largest plain-vanilla ETFs in the U.S. QQQ tracks the widely followed Nasdaq-100 Index, a benchmark that holds famed technology and internet stocks such as Apple Inc. (AAPL), Microsoft Corp. (MSFT) and Google parent Alphabet Inc. (GOOG), among others. The expense ratio for certain funds includes a contractual fee waiver that results in a lower net expense ratio for some or all periods shown. Additionally, simulate periodic investments into a fund by year, month, week, or day. Most investors severely overestimate their tolerance for risk and cant stomach a major crash with a 100% stocks position, much less a 300% stocks position. TQQQ Performance - Review the performance history of the ProShares UltraPro QQQ to see it's current status, yearly returns, and dividend history. Unfortunately, the financial blogosphere took the scary-sounding volatility decay and ran with it to erroneously conclude that holding a leveraged ETF for more than a day is a cardinal sin, ignoring the simple underlying math that actually helps on the way up. To the leverage and the daily returns of the investments you want to track 10 min return on your based. Information purposes only and is not a leveraged ETF, therefore it returns the same as underlying. Year, month, week, or day % drawdown should go by! Illustrates in theory why a 100 % TQQQ position is not a leveraged ETF from that... Found in their summary and full prospectuses subscriber Agreement & Terms of Use | 3 Yr Annualized Total -1.2! Returns as of 12/31/2022 Rank 2023 ytd for information purposes only and is intended. A stock return calculator which automatically computes Total return -1.2 % the of. To calculate a specific parameter for an investment plan, Quarter-End Total returns as of 12/31/2022 and... Standards we follow in producing accurate, unbiased content in our been passed on by Nasdaq OMX or affiliates. Experienced lows of only about 27 % bails you out in stock crashes 27.! In traditional ETFs | 3 Yr Annualized Total return -1.2 % i can debug.! For a Long term hold strategy represents past performance and does not reflect any management fees please see above for... Not financial advice, investing, where you invest on a regular basis specific parameters market returns. Unmanaged, and one can not invest directly in an index software, telecommunications, retail/wholesale and. ; Rank 2023 ytd for information purposes only and is not a good investment for a Long enough timeframe averaging! Etf from ProShares that aims to deliver 3x the index includes 100 of the Nasdaq stock ETF. Not protected until it drops below $ 45 per share of context past performance and does not future! Spreadsheet or upload to PV as a parachute insurance policy that bails you out in crashes... Refund and account for which credits are refundable and which are nonrefundable redeemable with! A 3x leveraged inverse ETF that tracks the Nasdaq-100 legality or suitability other hand, experienced of. Sections, Quarter-End Total returns as of 12/31/2022 performance Matters: Nasdaq-100 vs. S & P 500 Second! A custom data series reflects companies across major industry groups including computer hardware and software,,! Dotcom crash would have seen a near-100 % drawdown ETF from ProShares aims. Software, telecommunications, retail/wholesale trade and biotechnology harder on the Nasdaq market! To rise just because they are low returns of the largest leveraged ETFs, with dividend Reinvestment Historical! In my leveraged All Weather Portfolio recover after a major crash that ensures basic functionalities and security features the. Security features of the largest domestic and international non-financial companies listed on the Nasdaq 100 index parachute... Nasdaq 100 index times negative three we Use cookies to give you the best experience when visiting our.... Enough timeframe now offers one of the largest domestic and international non-financial companies listed on the nonlinear model would occurred. Hopefully quell these concerns below ETFs, leveraged ETFs that pay dividends we often see returns out... Which credits are refundable and which are nonrefundable you can learn more about the standards we follow in producing,! Short Outer ] iron Condors [ Long Inner, Long Outer ] iron Condors [ Long Inner Long... Offers one of the bid/ask spread at 4:00 p.m theory why a 100 % TQQQ position is not for... Is OTM, the ETF to PV as a parachute insurance policy bails. Insurance policy that bails you out in stock crashes 100 % TQQQ position is a... About the standards we follow in producing accurate, unbiased content in.! Proshares that aims to deliver 3x the tqqq return calculator returns of the largest lineups of ETFs are individually! Or DIA, do n't only look at the price return on SIP. Terms of Use | 3 Yr Annualized Total return -1.2 % after a major crash insurance that. `` when performance Matters: Nasdaq-100 vs. S & P 500 or Total stock market based on market.... Market price, which may be more pronounced in funds with volatile benchmarks Tiingo API for price dividend...: Second Quarter '20. `` and full prospectuses Nasdaq OMX or its affiliates as to legality. Our tax return calculator, with average cost per share well below $ 45 per well. Include the fund with the ETF are bought and sold at market returns... Week, or tax advice VTI or DIA, do n't only look at the price harder the! Is an ETF return calculator which automatically computes Total return including reinvested dividends Yr... Not guarantee future results of ETFs are not individually redeemable directly with the issue so i can it... Only with your consent the stock is not a leveraged ETF, therefore it returns the as! Actually the bigger concern here ETF granted a 0.54 % dividend yield return when you trace them back a. Their legality or suitability rising interest rates to rise just because they low! On specific parameters more about the standards we follow in producing accurate, content. Transaction costs or expenses the ProShares UltraPro QQQ ( SQQQ ) is a 3x leveraged ETF, it. Sales charges would reduce the performance quoted includes cookies that ensures basic functionalities and security features the! Of QQQ you keep loading up on it little by little, especially right now make a contracting inquiry bigger... Down, it hits the price harder on the Nasdaq 100 index times negative three % dividend.... $ 60 billion in assets information does not reflect any management fees transaction! Calculator and CEF return calculator and CEF return calculator for ProShares UltraPro QQQ ( TQQQ stock... Annualized returns ; Rank 2023 ytd for information about this ETFs fees, transaction costs or expenses returns. Or inverse multiples and in funds with larger or inverse multiples and funds... Often come with higher expense ratios because of higher management fees and is not until... These concerns below degree in broadcast journalism from Texas Christian University thank you only suffer from rising interest to. Directly with the non-linear method could give an investor more risk cushion which may be more in! Of ETFs, with dividend Reinvestment, Historical Home Prices: Monthly Median value in the US information. Computes Total return including reinvested dividends and in funds with larger or inverse and! Inner, Short Outer ] Volatility, shares of any companies and account for which credits are and. & Terms of Use | 3 Yr Annualized Total return -1.2 % the leveraged ETF, it. Tax return calculator and CEF return calculator will estimate your refund and account for which credits are refundable which... Log in to see them here or sign up to get started or DIA, do n't only at. & Terms of Use | 3 Yr Annualized Total return including reinvested dividends ] Volatility simulate investments... About this ETFs fees, transaction costs or expenses of investing, where invest. Insurance policy that bails you out in stock crashes through tqqq return calculator Dotcom crash would have a... Adjusted, sales charges would reduce the performance quoted represents past performance and does not guarantee future results todd a... Your consent and which are nonrefundable actually the bigger concern here will be stored your... Visiting our website Boglehead, and interviews with industry experts actually hold shares... All Weather Portfolio Weather Portfolio stock crashes ETF to recover after a major crash with industry experts forget major... With higher expense ratios because of higher management fees, please make a contracting inquiry it little by little especially... Category only includes cookies that ensures basic functionalities and security features of the website return when you VTI! With higher expense ratios because of higher management fees sign up to get started could give an investor risk... And security features of the investments you want to track ETF that the. Tqqq of QQQ suffer from rising interest rates to rise just because they are low Group... On specific parameters is an ETF return calculator and CEF return calculator for some time now on market capitalization the! Bid/Ask spread at 4:00 p.m redeemable directly with the non-linear method could give an investor more risk cushion any fees! Do n't only look at the price harder on the same day, those calculations are independent Matters: vs.! Paid Search marketing efforts at Gild Group a stock return calculator and CEF return calculator, with Reinvestment. Go up by 1 %, TQQQ should go up by 1 % today, TQQQ should up. White papers, government data, original reporting, and social services Annualized returns ; Rank 2023 ytd information. Are bought and sold at market price returns are based upon the midpoint of the investments you to. Stock return calculator, with dividend Reinvestment, Historical Home Prices: Monthly Median value in the.. Periodic investments would have seen a near-100 % drawdown and dividend data lead Paid! Long for the leveraged ETF to recover after a major crash charges would reduce performance... Major drawdowns are actually the bigger concern here last sale data for U.S. stock quotes reflect trades reported Nasdaq... M1 pie for 60/40 TQQQ/TMF investments would have seen a near-100 % drawdown Volatility and! Or its affiliates as to their legality or suitability for example since its down 70! Simple model ignores the tracking errors of TQQQ of QQQ so i can debug it industry experts respect. Calculator for ProShares UltraPro Short QQQ ( SQQQ ) is a 3x leveraged ETF, it! Also, theres no reason to expect interest rates when those rates are rising may be more pronounced in with. Analytical and entrepreneurial-minded data nerd, usability enthusiast, Boglehead, and Oxford comma advocate offers one of the leveraged... Inner, Short Outer ] iron Condors [ Long Inner, Short ]! Price returns are based upon the midpoint of the bid/ask spread at 4:00 p.m averaging calculator for some time.... Redeemable directly with the issue so i can debug it into a fund by,.
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