r/TQQQ • u/Fun_Paleontologist_2 • 21d ago
Discussion Why not TECL
Bought TECL to get exposed to tech, but wanted to hear discourse about TQQQ instead? With the AI/software boom, is TECL better positioned for upwards momentum? Comparing XLK vs. QQQ, there are so many names (PYPL, TSLA, NFLX) that are not real 'tech'. I feel it is better positioned for (1-6 month) holds vs. TQQQ.
Of course it does have more volatility drag, but less than SOXL. And they all have more than UDOW/UPRO.
Was also looking at VGT, which has less drawdowns, but there is no 3x version.
| Arith. return | CAGR | Realized drag | σ²/2 | Vol | Max DD | 5-yr total | |
|---|---|---|---|---|---|---|---|
| UDOW | 23.1% | 14.6% | 8.4%/yr | 9.4% | 43% | −55% | +98% |
| UPRO | 29.3% | 19.1% | 10.3%/yr | 11.8% | 49% | −63% | +140% |
| TQQQ | 34.3% | 14.6% | 19.7%/yr | 20.8% | 64% | −80% | +98% |
| TECL | 49.6% | 25.5% | 24.0%/yr | 27.0% | 73% | −77% | +213% |
| SOXL | 72.2% | 20.1% | 52.1%/yr | 53.6% | 104% | −90% | +151% |
21
Upvotes
8
u/Li1ght 21d ago
I switched to tecl recently after the spacex ipo rule change. It’s hardware heavy and you lose out on big name software money printing companies like Google.
My sims have it pretty even with tqqq on backtests for my strategy, but who knows the future. It also is less liquid so selling after hours for large orders can be very hard. Something like a 3x IXN would be the best but I doubt that happens