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QQQ gets the leverage from, among other things, swap agreements and futures. I don’t think what you have could be reasonably considered “pseudo-QQQ”. It’s like
by klodolph 4mo ago
QQQ gets the leverage from, among other things, swap agreements and futures. I don’t think what you have could be reasonably considered “pseudo-QQQ”. It’s like copying a cake recipe, but leaving out the flour and eggs because they are too expensive.
- tombert 4mo agoEven given that, I don't see any reason I couldn't also just mimic what QQQ does with the MCP.
- klodolph 4mo agoReal question, where are you going to buy the swap agreements?
- tombert 4mo agoIf you're asking about the average person, no. I am in the "false confidence" stage of Dunning Kruger Syndrome for finance stuff, so I personally would do swap agreements, but I'm not an average case.
- klodolph 4mo agoI realize I might have been mixing up QQQ with ultra pro QQQ… anyway, yeah, you can replicate QQQ. I was thinking of Ultra Pro QQQ.
- tombert 4mo agoI mean, even still, my point stays the same; if you have access to their strategies, I don't see why you can't just get the MCP to directly mimic that.
- klodolph 4mo agoBecause it is not possible for you (personally) to buy the underlying components of leveraged ETFs.
- tombert 4mo agoYeah, actually I think I was getting confused on some of the terminology. It looks like you're right. Still, as you said, just mimicking regular QQQ is achievable.
- klodolph 4mo agoIt’s achievable. It’s called “direct indexing”, and there are some extra costs associated with it, so for most investors, I think it is cheaper to get QQQ. You can flip that around with tax loss harvesting but I don’t understand that strategy and I can’t explain it. You also don’t need AI to do this. Before AI, the main barrier to direct indexing was the amount of capital you need. That is still true.
- deleted 4mo ago[deleted]