Curious, I realize that some ETF's will utilize a variety of financial hedging tools to maximize their profit and value.
My question regards Triple Leveraged ETF's but mainly TQQQ in particular. It is my understanding that TQQQ uses leveraged funds to prop up the value of its shares to mimic the returns of large cap tech companies. I also realize that the 3x leverage does not necessarily correlate to 3x the yield of the matching index. Would someone be kind enough to fill in some missing details and miscellaneous information? In the most basic sense, I believe this fund is borrowing a bunch of money from investors to attempt to mitigate fluctuations in the market.
I don't entirely understand what makes an ETF a triple threat, but I really want to go long on this. Thoughts? My portfolio would look like this ---> 80% TQQ, 10% VOO and 10% SPY
Submitted February 21, 2018 at 01:13AM by RossFraser94 http://ift.tt/2oc7vXK
