How High-Conviction Investors Amplify Tech Exposure

Disruptive technologies have been the driving force of equity market returns in recent years.

This phenomenon is seen in the returns of the Nasdaq-100®, the market barometer for technology and new-economy companies, which has outperformed the S&P 500 by about 800  basis points over the past five years (based on total returns of 103.8% for NDX vs. 96.0% for SPX, from 12/30/20-12/31/25).
 

This dramatic performance has created a growing class of active, high-conviction investors seeking ways to amplify the daily returns of the index with daily or short-term trading strategies. By tripling their exposure to the Nasdaq-100®, investors can gain additional exposure to the index beyond their invested capital. Traditionally, doing so has been difficult because investors had to borrow money through a margin account, secure an investment loan, or use futures to gain exposure beyond their initial capital.

LongPoint ETFs solve these problems by giving Canadian investors two ETFs that offer three times daily exposure or three times inverse daily exposure to the Nasdaq-100 Index ®.

The “QQQU” MegaLong (3X) Nasdaq-100® Daily Leveraged Alternative ETF seeks to deliver three times the daily performance of the Nasdaq-100 Index®.

The “QQQD” MegaShort (-3X) Nasdaq-100® Daily Leveraged Alternative ETF aims for three times the inverse daily return.

Both use leverage and derivatives to let investors target daily returns, with losses limited to the invested principal. These ETFs provide liquidity, and ease of trading.
 

With a leveraged approach to the Nasdaq-100 Index®, Canadian investors can magnify their exposure to 100 of the most innovative large-cap companies listed on The Nasdaq Stock Market® . The Index offers a way to participate in today’s technological revolution via companies across major industry groups, including computer hardware and software, telecommunications, and biotechnology. As AI continues to be a dominant, and volatile theme in the stock market, investors are increasingly looking for ways to benefit from both the rise and fall of the index. Leveraged ETFs are a convenient way to put that strategy into practice in any portfolio, and any account.

With the MegaLong ETF, investors can capture triple the gains of the benchmark, magnifying the impact of investing in the Nasdaq-100 Index®. With the MegaShort ETF, investors can benefit from triple the daily losses of the benchmark. 
As with all leveraged ETFs, performance over periods longer than one day may diverge from the stated daily return. In upward-trending markets, leveraged long ETFs can outperform their target multiple as gains compound and exposure increases. In downward-trending markets, losses may be less severe than the benchmark multiple due to reduced exposure as assets decline. However, in volatile or sideways markets, daily rebalancing can erode returns, meaning performance may diverge significantly from the benchmark, even resulting in losses despite a positive index.

LongPoint ETFs are built for active Canadian investors with strong market convictions and short-term views, seeking access to unique strategies in other markets. They are one of the newest ETF entrants, and their team of experts bring experience from the ETF market, critical industry connections, and local knowledge to launch proprietary and partnership ETFs.

Disclaimers

These ETFs are highly speculative and use a significant amount of leverage which magnifies gains and losses. These ETFs are intended for use in daily or short-term trading strategies by very knowledgeable, sophisticated investors. For example, you could lose your entire investment in one day if the underlying index of the ETF experiences a single-day price movement that is greater than 33%. In addition, if you hold the ETFs for more than one day, your return could vary considerably from the ETF's daily target return. The negative effect of compounding on returns is more pronounced when combined with leverage and daily rebalancing in volatile markets. The ETFs are not suitable for investors who do not intend to actively monitor and manage their investments. 

Commissions, management fees, and expenses all may be associated with investment funds. Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus; please read it before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. LongPoint ETFs are managed by LongPoint Asset Management Inc. and are available across Canada through registered dealers. This material is for informational purposes only. 

This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial and/or tax advisor for financial and/or tax information applicable to their specific situation. 

All investment funds, including those that seek to track an index are subject to risk, including the possible loss of principal. Diversification does not ensure a profit or protect against a loss in a declining market. While the LongPoint ETFs are designed to be as diversified as the original indices they seek to track and can provide greater diversification than an individual investor may achieve independently, any given ETF may not be a diversified investment.