- Rank: 45
- Followers: 19
- Votes: 276
- Years Member: 19
- Last Update: 24 February 2021, 8:09
The Artificial Intelligence revolution is here and chips are at the core of it fueling the advancements in every industry. Humanity is on the way to total automation, technological singularity, and a post-scarcity economy. The demand for chips will grow exponentially continuing the explosive grows.
This ETF is very volatile and tradable. But buying and holding it for the long term works as well, especially when your portfolio grows to millions and you will face issues such as liquidity and taxes. Buying and holding would give you probably about 100% of annual returns or even more: remember this is 3x leveraged security. Advantages of this ETF:
1. It is the best balance of aggressive-diversified security. The holdings include cream of the crop tech stocks such as Nvidia, AMD, Intel, Texas Semi, Qualcomm, Micron. The set of stocks is automatically re-balanced if a certain company gets weaker overtime, so for the long term investment, the investment is pretty safe.
2. You will not get a margin call on this ETF, so you do not have to sell it at loss. So called "decay" or "volatility drag" is a myth: https://blogs.cfainstitute.org/investor/2015/03/23/the-myth-of-volatility-drag-part-1/
3. You do not pay margin interest on this, yet you get 1.5 times more leverage versus regular margin.
The above is QUARTERLY chart: each bar is one quarter: I love this simple visualization of time/price.
This information is presented for education purposes only. StockCharts.com is not responsible for any comments, advice, or annotations presented on this page. Please review our Terms of Service for more details.