QQQ3 Will Reach New Highs in Time

Some subscribers are worried that the Nasdaq 100 and its unleveraged tracker, QQQ, are hitting new all-time peaks while QQQ3, the leveraged and daily rebalanced version, is still short of the old peaks.

QQQ3 has no one-to-one relationship with the Nasdaq 100 because of the daily rebalancing. It is like a moon swinging around it in an unpredictable orbit. The direction of travel is the same and QQQ3 will move more. Since the trough in 2022/23, QQQ3 has roughly quadrupled. The Nasdaq 100 is up around 80pc. That massive outperformance is why we buy QQQ3. Who cares if they haven't reached new highs yet; they will.