Thinking to invest in index funds to have stable returns and planning to invest small amounts weekly in either QQQ or TQQQ.
TQQQ gives 3x profits/loss on the normal index. Why should then one choose QQQ?
What are the pros and cons here if you invest weekly? Which one is a better strategy?
Also, why is SPY index popular than the counterparts betting on 3x daily returns? The 10 year gains difference is huge between spy and tqqq
TQQQ is a very risky ETF and should definitely not even be considered by majority of the investors. Only someone that very actively tracks the markets should consider TQQQ. TQQQ is 3x more volatile than QQQ, the regular Nasdaq-100 ETF. Due to this increased volatility you are adding increased risk to your portfolio for the hope that you can time the market well enough to exit with 3x returns.
(Not to be considered as advice)
Let’s say whenever nasdaq100 is down or negative, you invest small amounts every week till 5 years. Would the timing still matter? As markets may take some hits in short run but will grow over longer periods. Is there something im missing here? 