According to etfdb.com leveraged 3X ETFs are funds that track a wide variety of asset classes, such as stocks, bonds and commodity futures, and apply leverage in order to gain three times the daily or monthly return of the respective underlying index. Basically they’re taking a huge risk in order to maximize returns and possibly make you rich. However they’re are huge risks with leveraged ETF’s including maximizing losses due to aforementioned leverage. Also due to the fact that lots of ETF’s are only designed to be traded in short term and some actually degrade in value over time, so it might not be a good idea to hold these ETF’s. But without further ado let’s get into the 4 ETF’s that could make you rich (you know if everything goes right, and you don’t lose your money).
$TQQQ Proshares Ultra Pro QQQ: this ETF has about $3.3 billion in total assets and is focused around tech. Over a 5 year period this fund boasts a large 328% return. However it has a loss of about 9% over the last year most likely due to trade concerns between the United States and China.
$GASX Direxion Daily Natural Gas Related Bear 3X Shares: This ETF is incredibly small with only $6.01 million in total assets and it is a bear ETF focused around natural gas. However it has realized a 52% year to date return. And over the past year, this ETF has realized a return of 294%.
$UGLD VelocityShares 3x Long Gold ETN: This ETF is boasting a one year return of 92%, but has a slight decline over the last year years, decreasing by 7% over that period. This ETF focuses on gold stocks and asset classes and could be a good play if the recession talk is real.
$DRN Direxion Daily Real Estate Bull 3x Shares: This ETF is focused around real estate and more specifically, appreciating real estate prices. This ETF has a 1 year return of 22% and a 5 year return of over 84%.
DISCLAIMER: I do not own any of the securities listed and I am not an investment or financial advisory professional. Any financial or investment decisions should be made with research and the input of a financial advisory or investment professional.