Markets

Leveraged Nasdaq-100 ETF (TQQQ) Hits a New 52-Week High

For investors seeking momentum, ProShares UltraPro QQQTQQQ is probably on the radar now. The fund just hit a 52-week high and is up about 122.9% from its 52-week low of $82.43/share.

But are more gains in store for this ETF? Let's take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

TQQQ in Focus

This ETF offers triple-leverage exposure to the daily performance of the NASDAQ-100 Index. The index is heavy on Information Technology (61.1%), Consumer Discretionary (20.8%) and Health Care (10.2%). The fund charges investors 95 basis points a year in fees (see: all Leveraged Equity ETFs here).

Why the Move?

The Nasdaq has been an area to watch lately given the upbeat sentiment prevailing around Wall Street, courtesy of the one-and-a-half-year high job additions in February.

Bond yields have been rising as prospects of higher interest rates this year started being baked in at the current level.

Since Nasdaq-100 is heavy on cyclical sectors like Technology and Consumer Discretionary, which perform well in a rising rate environment, gains in TQQQ are self-explanatory.

More Gains Ahead?

It seems that this fund might stay strong given a positive weighted alpha of 115.63 . There is still some promise for investors who want to gain from this surging ETF.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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