SOXL maybe? It’s 3x leveraged exposure to semiconductor manufacturers.
FNGU is another 3x leveraged one to consider, tracking the FANG+ index, which includes META, TSLA, NVDA, AMD, NFLX, AAPL, AMZN, SNOW, MSFT, and GOOGL.
The intrinsic daily compounding of 3x ETFs will drag on gains in a sideways market (which is why leveraged funds are often discouraged for long-term investment) but will actually accelerate returns in a bull market. And (of course) leverage is double edged and will hurt more in a bear market. OTM put options can protect against the left tail without dragging on gains too much, but they’re not for free. (FNGU currently has no options, but FNGS, which tracks the same index without the leverage, does.) If rates go up too much it could do weird things to leveraged funds.
You can also just do the unlevered versions of this, like SMH / SOXX / SOXQ, plus tech companies with AI exposure (MSFT, GOOGL, META, AMZN—or a tech ETF like QQQ).
A leverage + put options combo means you’ll end up paying lots of money to market makers.
Any good candidates for “AI index fund” people know of?
You mean an AI ETF? My answer is no; I think making your own portfolio (based on advice in this post and elsewhere) will be a lot better.
Disclaimer: I’m not your investment advisor.
But hypothetically:
SOXL maybe? It’s 3x leveraged exposure to semiconductor manufacturers.
FNGU is another 3x leveraged one to consider, tracking the FANG+ index, which includes META, TSLA, NVDA, AMD, NFLX, AAPL, AMZN, SNOW, MSFT, and GOOGL.
The intrinsic daily compounding of 3x ETFs will drag on gains in a sideways market (which is why leveraged funds are often discouraged for long-term investment) but will actually accelerate returns in a bull market. And (of course) leverage is double edged and will hurt more in a bear market. OTM put options can protect against the left tail without dragging on gains too much, but they’re not for free. (FNGU currently has no options, but FNGS, which tracks the same index without the leverage, does.) If rates go up too much it could do weird things to leveraged funds.
You can also just do the unlevered versions of this, like SMH / SOXX / SOXQ, plus tech companies with AI exposure (MSFT, GOOGL, META, AMZN—or a tech ETF like QQQ).
A leverage + put options combo means you’ll end up paying lots of money to market makers.