ProShares Ultra QQQ

QLD

Market cap $9.85B

Market timing is futile; a disciplined, diversified, and rules-based approach is essential for long-term investing success. A Near-Perfect Strategy portfolio aims for consistent income, growth, and lower volatility through diversification and strategic planning. The portfolio targets 6% income and S&P 500-beating returns, with lower volatility and drawdowns, making it suitable for investors seeking financial freedom or retirement income.

QLD offers significant long-term capital growth potential, outperforming both its benchmark QQQ and high-yield QYLD, despite a minimal yield. The ETF mirrors QQQ's tech-heavy allocation, concentrating exposure in technology, communications, and consumer discretionary sectors. QLD's sector composition results in higher volatility, especially compared to more defensive sectors like consumer staples.

The S&P 500 provides a meager 1.2% yield, besides a roller-coaster ride on a regular basis. It may be a reasonably good investment for younger investors when they are in their prime accumulation phase. If you are a retiree or someone who depends on a regular income stream from your investment portfolio, the last thing you want is to worry about when to sell shares to raise income. We will present a balanced and highly diversified 3-bucket portfolio that is likely to provide 5% to 6% income and market-beating growth with lower volatility and less drawdowns. It will also provide $5,000 on a monthly basis on a $1 million capital.

ProShares Ultra QQQ (QLD 0.66%) is an exchange-traded fund (ETF) that tracks the Nasdaq-100 index. But unlike other Nasdaq-100 ETFs, which directly track the index, Ultra QQQ aims to double the performance of the Nasdaq-100.

ProShares Ultra QQQ offers 2x daily exposure to the Nasdaq-100, best suited for active traders seeking amplified short-term tech sector returns. My bullish outlook on tech, driven by strong AI and data center investment from top Nasdaq-100 names, supports a conditional BUY rating for QLD. Investors must be cautious: holding QLD beyond a day introduces compounding risks and potential value decay during volatile or declining markets.

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The market is experiencing some hiccups, with plenty of uncertainties looming, making gradual investment over 3–6 months advisable for long-term investors. The article is part 2 of our previous article and presents three new investment strategies. We are going to discuss how strategically you can deploy your capital on a gradual basis using these strategies. Understanding personal risk tolerance is crucial before investing, as it dictates how one handles market downturns and portfolio drawdowns.

Leveraged ETFs amplify the daily returns of an index or stock using financial derivatives.

Investor appetite for growth really is something to behold.  Coming into the week of the U.S. presidential inauguration, we had been talking about the importance of diversification in the face of so much uncertainty, geopolitical risk, and lofty equity valuations following massive market gains in recent years.

With cross currents jostling the markets and a knowledge of history, we were quick to sell. And quick to buy back.