TQQQ > SOXL

[Saltynuts]

SOXL begin its life 3/11/10. An investment of $100 then would have turned into $5,512.49 today. That's an IRR of 43.03%. Max drawdown on the account was 80.38%.

Same thing with TQQQ beginning on 3/11/10 - $100 would have turned into $8,823.58, for an IRR of 49.17%, max drawdown was 69.92%.

TQQQ appears to be the better long term vehicle.

 

[Saltynuts]

Didn't someone reply to this earlier? I thought I read something but now gone? It was a good reply to if I remember correctly. I must be going crazy lol.

 

[comagnum]

That was me - did not want to sound preachy so I deleted it. Depends on what time frame you compare TQQQ with SOXL. On most QQQ legs up the SOX often leads by a wide margin.


Feb 2014 - present SOXL outperforms TQQQ by 65%.

 

[Saltynuts]

That was it comagnum! Thanks, I love preachy, still digging in and investigating these numbers, trying to understand them (if there is anything really to understand lol). I'll look at SOXL for those time periods you mention, I have no doubt you are right. I just wish these 3x things went back further so there was more data. Maybe there is alpha buying SOXL on the dips then switching over to TQQQ after a certain amount has been recovered or what not, for example.

Thanks!

 

[SteveM]

TQQQ suffered a -73% drawdown in 4 weeks during the March 2020 COVID plunge....not saying it is a bad investment, but make sure you understand the risks in these products when we are no longer in a "number always go up" market.

 

[Scataphagos]

SOXL begin its life 3/11/10. An investment of $100 then would have turned into $5,512.49 today. That's an IRR of 43.03%. Max drawdown on the account was 80.38%.

Same thing with TQQQ beginning on 3/11/10 - $100 would have turned into $8,823.58, for an IRR of 49.17%, max drawdown was 69.92%.

TQQQ appears to be the better long term vehicle.

Or... you could learn "Price TA" and perhaps not have to suffer those "max drawdowns". Just a thought.

 

[murray t turtle]

That was me - did not want to sound preachy so I deleted it. Depends on what time frame you compare TQQQ with SOXL. On most QQQ legs up the SOX often leads by a wide margin.


Feb 2014 - present SOXL outperforms TQQQ by 65%.
View attachment 259482

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Exactly;
SOXL[semi sector] is wilder if timing is off a bit.
SPXL may do better than TQQQ this year , but that seldom happens..................................................................................

 

[nitrene]

Actually FNGU has done better than both since its inception in January 2018 (1/22/2018):

TQQQ 238%
SOXL 221%
FNGU 406%

Of course YTD none of those have done anything compared the the inflation plays:

SOXL 25%
FNGU 7%
FAS 100% (3X XLF)
NAIL 90% (3X XHB)
ERX 84% (2X XLE)
TPOR 92% (3X IYT)

I think the Financials are a canary-in-the-coalmine indicator for the Value sectors so I think FAS, ERX & TPOR are all correlated but the Housing sector seems to be in its own world due to people getting out of the city and into suburbs/exurbs plus the high tax to low tax migration. In fact up until a few weeks ago NAIL was up 150%.

I think the best strategy is to see which sectors are in favor at the given moment buy those. I think any of these ETFs can collapse if they go down 20-30%. In fact the reason ERX is a 2X ETF is because one day last March the Energy sector index almost went down 30% so the Direxion people reduced it to 2X along with a lot of other 3X ETFs they were running including the Gold Mining ETFs that I owned at the time (NUGT & JNUG).

I think TQQQ/SOXL have really avoided any major drawdowns so they look good long term. I'm sure if these ETFs were around from December 1999 onward it would look radically different.