1. Vanguard S&P 500 ETF
2. Invesco QQQ ETF
Ticker Symbol: QQQ
QQQ tracks the NASDAQ 100 index, which includes the 100 largest non-financial companies listed on the NASDAQ stock market. It’s heavily weighted towards the tech sector, making it a popular choice for investors seeking high growth in technology and innovation-driven companies.
- Inception Date: March 10, 1999
- Expense Ratio: 0.20% ($200 per $100,000 per year)
- Annual Return (10 years): 17.5%
- Risk Profile: High, due to its tech-heavy focus and higher volatility
Major Drawdowns:
- March 2020: -28.3%, Recovery Time: 4 months
- December 2018: -21.5%, Recovery Time: 3 months
- August 2011: -15.5%, Recovery Time: 2 months
Exposure to magnificent 7 stocks : 48%
- NVIDIA: 4.6%
- Apple: 11.8%
- Microsoft: 10.9%
- Amazon: 6.1%
- Meta: 4.0%
- Google (Alphabet Class A & C combined): 7.4%
3. Schwab U.S. Large-Cap Growth ETF
Ticker Symbol: SCHG
SCHG aims to track the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. It invests in large-cap U.S. companies with growth characteristics, offering a diversified exposure to companies that are expected to grow at an above-average rate compared to other companies.
- Inception Date: December 11, 2009
- Expense Ratio: 0.04% ($40 per $100,000 per year)
- Annual Return (10 years): 15.5%
- Risk Profile: High, due to its focus on large-cap growth stocks
Major Drawdowns:
- March 2020: -32.2%, Recovery Time: 5 months
- December 2018: -17.8%, Recovery Time: 3 months
- August 2011: -14.7%, Recovery Time: 2 months
Exposure to magnificent 7 – 38%
- NVIDIA: 5.0%
- Apple: 11.6%
- Microsoft: 9.9%
- Amazon: 6.7%
- Meta: 4.5%
- Google (Alphabet Class A & C combined): 6.3%
4. ProShares UltraPro QQQ
Ticker Symbol: TQQQ
TQQQ aims to provide three times the daily performance of the NASDAQ 100 index. This leveraged ETF is designed for short-term trading and can offer substantial returns, but also comes with significantly higher risk and potential for large losses.
- Inception Date: February 9, 2010
- Expense Ratio: 0.95% ($950 per $100,000 per year)
- Annual Return (10 years): 34.5%
- Risk Profile: Very high, due to its leveraged nature and high volatility
Major Drawdowns:
- March 2020: -70.8%, Recovery Time: 6 months
- December 2018: -47.2%, Recovery Time: 5 months
- August 2011: -42.3%, Recovery Time: 4 months
Exposure to magnificent 7 stocks -45%
- NVIDIA: 4.6%
- Apple: 11.8%
- Microsoft: 10.9%
- Amazon: 6.1%
- Meta: 4.0%
- Google (Alphabet Class A & C combined): 7.4%
5. ProShares Ultra Semiconductors
Ticker Symbol: USD
USD is a leveraged ETF that seeks to provide twice the daily performance of the Dow Jones U.S. Semiconductors Index. It focuses on the semiconductor sector, offering high growth potential but also comes with increased risk due to its leverage and sector concentration.
- Inception Date: February 6, 2007
- Expense Ratio: 0.95% ($950 per $100,000 per year)
- Annual Return (10 years): 36.25%
- Risk Profile: Very high, with leveraged exposure to the semiconductor sector
Major Drawdowns:
- March 2020: -63.2%, Recovery Time: 7 months
- December 2018: -38.4%, Recovery Time: 6 months
- August 2011: -35.7%, Recovery Time: 4 months
Exposure to Magnificent 7 stocks:
Only 5% on NVDIA. It is sector specific ETF
Conclusion
In summary, each of these offers unique investment opportunities depending on your financial goals and risk tolerance.
- VOO provides broad exposure to the US market through the S&P 500.
- QQQ focuses heavily on technology and growth stocks in the NASDAQ 100.
- SCHG focuses on large-cap growth stocks, providing exposure to companies expected to grow at an above-average rate.
- TQQQ and USD offer the potential for high returns but come with significantly higher risk and volatility.
However, it is crucial to remember that investing always carries risks, and the performance of these ETFs can vary based on market conditions. The information provided here is for reference only. It is essential to conduct your own due diligence and consult with a financial advisor to determine the best investment strategy for your individual needs and circumstances.
Happy investing!
