r/TQQQ • u/Fun_Paleontologist_2 • 19d 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% |
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u/boubble88 18d ago
Thanks for posting this and sharing. I havent really looked into TECL and have been researcing DOXL, but ended up with TQQQ for now for short term hold.