Tqqq is a derivative of the the Nasdaq-100 Index. The danger of Tqqq is that it will fall towards 0 if the index starts to move sideways for a long time or it

Tqqq is a derivative of the the Nasdaq-100 Index. The danger of Tqqq is that it will fall towards 0 if the index starts to move sideways for a long time or it falls for a considerable amount of time. If the market dives for a short period and recovers then it will recover along with the rest of the market. Percentage wise it will fall deeper than the index but compounding will eventually bring it back to profitability. It's not for the faint of heart since even in a relatively small downturn it falls hard. During the last index downturn there was a day in which tqqq fell over 9% and kept on going down but now it's recovered and it hit a new 52 week high. The fund is a high risk high reward investment. I would not avoid it but I would invest the high risk portion of your investment funds and hold it until retirement. It should be small enough so that it does not impact your finances if it suddenly goes to 0. I don't think you should avoid it but you need to be very careful on how much money you invest in it since you can lose it all.