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Through the stock market, you can invest in stocks, funds, REITs, and different investment instruments. But in this video, I'm going to tell you about a couple of ETFs that invest in the Nasdaq 100 index, which tracks US technology companies. This particular ETF is leveraged three times, both for and against this index.
My name is USC, the Luévano channel. And on this channel, you'll learn how to make your money earn more money. Join me in watching this video about two leveraged ETFs that invest for and against the Nasdaq stock index. Hello investors, how are you? Because you asked for it, today we're going to talk about a couple of ETFs, a couple of ETFs with a special characteristic.
They are leveraged ETFs, three- times leveraged ETFs that invest in the Nasdaq 100 index. You've probably heard of the Nasdaq index, the S&P 500, the Dow Jones. The Nasdaq index is the newest of the... The most important indices of the United States stock market include the Nasdaq 100. Specifically, this index, which was launched in 1985, is approximately 38 years old.
This index comprises the 100 largest companies by market capitalization on the Nasdaq stock exchange. The Nasdaq is the New York Stock Exchange, which is 100% automated and headquartered near Times Square in New York. As I mentioned, dear friends, this index is the newest of all the ones we have here.
It is usually associated with technology companies, since most of the technology companies included in the main US indices are listed on the Nasdaq. The Dow Jones index is the oldest of all, and the S&P 500 is a well-known indicator that tells us more or less how the US market is doing, as it includes the 500 largest companies on the US stock exchange.
We are already familiar with the Nasdaq 100 index. This is the page of etfdb.com etfdb case.com so we can learn a little about what the TRIQ ETF is. We 've already covered the TRIQ ETF in other videos. It's an ETF in which we currently invest. We have a position in this ETF because we want to diversify our portfolio with access to technology companies and the Nasda index.
The TRIQ ETF invests in the Nasdaq 100 index and has a management fee of 20%. This ETF has been on the market since 1999, and what's important for us to know is about the companies that make it up. As mentioned, this ETF includes the largest and most important companies on the Nasdaq stock exchange.
First, it has Apple, representing 11.07% of its basket of stocks. In fact, this ETF currently has 102 stocks that make up this index. It also includes Microsoft at 9.64%, Amazon at 5.3%, Nvidia at 4.44%, Metap Platforms Alphabet Class A and Class C shares, Tesla, Costco, Adobe, and Pepsi. Cisco Systems and Advanced Micro Devices, to name a few companies, we already know this ETF, dear friends.
Let's see how this ETF has performed so far this year. The Nasdaq index has had a rather formidable performance this year, rising almost 40% to 39.46%. And let's see how the Triple Q ETF has performed. The Triple Q ETF has also had the same performance, rising 39.5% so far this year, 36.97% in the last year, more than 110% in the last 5 years, and more than 500, almost 600% since it began trading.
The two ETFs I'm going to talk about today are two leveraged ETFs, and they're leveraged three times, so you have to be very careful with these instruments because just as they can amplify your gains, they can also amplify your losses. The first ETF is an ETF that invests with three-times leverage in the TriQ ETF, and this ETF is the Triple Q ETF.
Here it is currently costing 8.57 and has an 8% management fee, which is obviously a high cost. But as I was saying, this ETF invests with three-times leverage in the Triple Q, meaning that if the Triple Q goes up 10%, this ETF will go up 30%. If the TriQ ETF falls 10%, this ETF will fall three times harder, 30%.
And so far this year, 2023, let's see how this ETF has performed. Here it is, it has gone up 27.7% over the last year. 99% the last 5 years 170 per. But this is where we need to be very careful with this ETF. If we look at November 2021 when the Nasdaq index was at all-time highs, then a bearish year followed, and look how this ETF fell.
At its worst, it dropped by up to 80%. This PR Shares ETF allows you, dear investor friends, to invest in the Triple Q ETF with three times leverage. The next ETF, another one we've also invested in, is the S TriQ ETF. We bought it several times last year, and we've bought it several times this year as well.
This PR Shares Ultra Pro Short Triple Q ETF is an inversely investing ETF with three times leverage against the Triple Q. This ETF has a higher management fee of 95%, so obviously, anyone who invests in this ETF won't keep it in their investment portfolio for very long unless they are a very bearish person who believes...
The idea that the stock market will continue to plummet over the years is quite the opposite; for at least the last 100 years, the stock market has tended to rise, and NASDA, since its creation in 1985 and to date, has experienced positive growth. This ETF is a 3x leveraged inverse ETF on the Triple Q ETF, and here we can see how the price of the Triple Q ETF has behaved.
Today, for example, it is trending upwards, but so far this year (2023), it has fallen 66%. In the last year it has fallen 67.72%, in the last 5 years since its creation it has fallen 98.61%. This ETF, for example, in this year 2023, if you had bought this ETF F in March while the stock market was falling, you would have gained 24-25%.
If you had bought it around the beginning of September when the stock market was falling, you would have gained 17-12%, or even almost 18%. But I repeat, dear friends, we must be very careful with these two instruments. On one occasion, someone asked me, "Oscar, what happens if I see the stock market rising, and while I see the stock market rising, my investment in the Triple Q ETF starts to fall?" What happened was that this person had invested in the SQQ ETF, which, as I mentioned, is an inversely leveraged ETF, three times the inverse of the Triple Q ETF.
The same thing happened with this same ETF from December 1, 2022, until around the beginning of 2023. This ETF also experienced a 38% increase. But as I said, dear friends, since its creation, the Nasdaq index has tended to rise. In these three years since its creation, the Nasdaq index has tended to rise.
So, what the SQQ ETF has done is fall since its creation, and that is its purpose: to invest in... The inverse and leveraged three times against the Triple Q ETF. Almost finished, dear friends, these two ETFs I just told you about can also be bought from any brokerage firm in Mexico. I repeat, you have to be very careful with these two investments since they are leveraged three times.
It's not as much as when you start investing in forex, since forex can sometimes be leveraged up to 200 times; these are leveraged three times. In any case, you have to be very careful. They are not recommended for a conservative or moderate investor profile, of course not, but for those more risk-tolerant investors, even those who want to invest in trading or scalping, these two investment instruments can be interesting.
The QQQ ETF is also listed on the International Quotation System, which means it can be bought from Mexico from any brokerage firm. If you have an account with GBM Bursanet or Cuspid, you will be able to buy this ETF, and the truth is that this ETF has some volume every day, so it's not that difficult to buy.
Selling it, as we can see, almost every day it has a trading volume above one million pesos, sometimes even reaching 10 million, 17 million, or even 20 million. It certainly has a significant trading volume. Now, the SQQQ ETF is also listed on the International Stock Exchange and can be purchased from any brokerage firm in Mexico.
If we review the trading volume of this ETF in recent months and the last year, it also has a similar trading volume above one million pesos every day. At some point, it has even traded above 530 million pesos, but it does have a fairly decent trading volume. Fellow investors, this video was quite simple and quick.
I hope this information is helpful. If you find this information useful, I would greatly appreciate your support by giving this video a like and sharing it. Let us know in the comments if you already invested in or were familiar with these two ETFs we've discussed today. In the next video, we'll be talking about leveraged ETFs.
Let's talk about two ETFs that invest in the S&P 500 index, which can also be purchased from Mexico, friends. Take care and see you next time. Thanks for watching this video. If you liked it, give it a like and share it. If you're not following us yet, consider subscribing. Today I'm greeting you from the city of Vienna in Austria
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