13% is quite high. IBKR take 5.83% for anything less than 100k. Even that is high considering the SPY averaging 8% per year ...
The next 15 yrs can bring the most decay you have ever seen to tqqq. Imagine of tqqq was trading in 1999 to 2001!!!!
Yikes. Seriously I'm going to repeat this again for then 7th or 178th time, but way way way way toooooo many people are expecting and anticipating the same exact 4 yrs we had under trump the last time .....I'm telling you this time that's not happening. Do not expect the same of anything that we had under the last trump presidency!!!!
Don't be surprised if tqqq is under 40 bucks in the next 6 to 12 months. Actually it wouldn't take much for tqqq to drop in half. If you get a sizeable sell off tqqq could be trading in the 30s again! Going to take alot of earnings power for the continous mag 7 to drive markets higher.
The orignal companies that created these ETFs were ProShares & Direxion way back during the GFC. Most of them were 2X of broad indices as well as sector indices. I remember an interview with the creator of ProShares and he said it was aimed at daytraders who wanted more leverage hence the daily rebalance. Obviously back then there was so much volatility just on the 2X it was a good strategy. I believe the VIX was above 40 for like 6+ months. I think after 2012 the volatility died down and these ETFs were actually pretty good as longer term vehicles -- especially the 2X ones. There are ETFs now that do a weekly, monthly & quarterly rebalance so those are probably better for long term holding. These are offered by the Tradr family of ETFs: SPYB Tradr 2X Long SPY Weekly ETF SPYM Tradr 2X Long SPY Monthly ETF SPYQ Tradr 2X Long SPY Quarterly ETF [I remember shorting the financials using the Proshares SKF ETF back in 2008. There was a time after the Lehman collapse when the Bush administration banned short selling on the TBTF financials so I exited then.]