Leveraged ETFs (Core)

A long-term investment that forms the foundation of an investor’s portfolio.  A core portfolio strategy is to primarily own an investment that tracks the overall market.  A solid core holding gives an investor the flexibility to take a chance with riskier investments in other areas of the portfolio.

Calendar Year	S&P 500 (UPRO)	Nasdaq 100 (TQQQ)	Russell 2000 (URTY)	Dow 30 (UDOW)
2018	13.7%	42.0%	28.3%	4.4%
2017	71.4%	118.1%	38.9%	99.1%
2016	30.8%	11.4%	60.1%	47.5%
2015	-5.2%	17.2%	-21.0%	-8.6%
2014	38.0%	57.1%	5.9%	26.0%
2013	118.5%	139.7%	147.9%	107.1%
2012	46.8%	52.3%	44.6%	26.4%
2011	-11.9%	-8.0%	-37.6%	9.0%
2010	36.3%	78.1%	90.1%	51.3%
Avg Ret.	37.6%	56.4%	39.7%	40.2%

A properly constructed core portfolio of leveraged ETFs will tend to outperform the benchmark.  A core portfolio strategy also results in a portfolio that is easy to monitor and rebalance because it only contains a few investments.

 

Leveraged ETFs (Core) 6 Apr 18

A long-term investment that forms the foundation of an investor’s portfolio.  A core portfolio strategy is to primarily own an investment that tracks the overall market.  A solid core holding gives an investor the flexibility to take a chance with riskier investments in other areas of the portfolio.

Calendar Year	S&P 500 (UPRO)	Nasdaq 100 (TQQQ)	Russell 2000 (URTY)	Dow 30 (UDOW)
2018	-11.0%	-3.8%	-6.8%	-12.9%
2017	71.4%	118.1%	38.9%	99.1%
2016	30.8%	11.4%	60.1%	47.5%
2015	-5.2%	17.2%	-21.0%	-8.6%
2014	38.0%	57.1%	5.9%	26.0%
2013	118.5%	139.7%	147.9%	107.1%
2012	46.8%	52.3%	44.6%	26.4%
2011	-11.9%	-8.0%	-37.6%	9.0%
2010	36.3%	78.1%	90.1%	51.3%
Avg Ret.	34.9%	51.3%	35.8%	38.3%

A properly constructed core portfolio of leveraged ETFs will tend to outperform the benchmark.  A core portfolio strategy also results in a portfolio that is easy to monitor and rebalance because it only contains a few investments.

Leveraged ETFs (Bullish) 6 Apr 18

Leveraged ETFs use a combination of stocks, options and futures to double or triple the movement of an underlying asset or index that it tracks.  Leveraged ETFs have grown in popularity with the trading crowd because the funds can generate returns very quickly (provided of course, that the trader is on the right side of the trade).

Symbol	Price	RSI-2	6-Month	1-Year
UWT	$26.26	5.09	75.89%	31.37%
EDC	$117.81	13.21	6.60%	58.91%
BRZU	$46.41	20.22	-9.60%	13.28%
TECL	$107.02	21.37	18.64%	61.81%
TQQQ	$133.42	23.22	15.43%	52.64%
FAS	$61.26	23.99	7.48%	41.99%
ARKW	$48.66	24.94	20.96%	70.95%
UDOW	$81.95	27.37	13.72%	51.23%
TNA	$65.18	29.95	-2.76%	32.66%
URTY	$76.76	30.09	-2.45%	33.13%

Leveraged ETFs are not for the faint of heart.  Traders who can stomach the volatility can realize large gains (or losses) on their positions very quickly.  These funds should only be tackled by an experienced trader with a stomach to handle losses.