FAS uses swaps and derivatives to deliver three times the daily return of the Financial Select Sector Index. When JPMorgan Chase & Co. ( NYSE:JPM), Bank of America Corporation ( NYSE:BAC), and Visa Inc. ( NYSE:V) (the fund's largest holdings) climb 2% in a day, FAS targets a 6% gain. The fund holds $2.5 billion in assets, with 59% in financial stocks and roughly 33% in cash instruments and swaps that create the leverage.
The Portfolio Role: Broad AI Exposure Without Picking Winners AIQ provides comprehensive AI participation without concentrating capital in a handful of names. The fund combines appreciation from companies building AI infrastructure (semiconductors, cloud computing) with those deploying AI applications (software, automation, consumer tech). No single position exceeds 4.5% of the portfolio. Alphabet ( NASDAQ:GOOGL) leads at 4.44%, followed by Samsung Electronics at 3.92% and Advanced Micro Devices ( NASDAQ:AMD) at 3.63%. Even NVIDIA ( NASDAQ:NVDA) represents just 2.84% of assets.
ProShares UltraPro QQQ ( NASDAQ:TQQQ) is proof positive that you don't need sophisticated trading know-how to get leverage in the financial markets. Instead of delving into NASDAQ 100 futures contracts or individual stock picking, you can simply use ProShares UltraPro QQQ to get magnified exposure to the biggest names in American technology. While there are other triple-leveraged funds available on the market today, ProShares claims that its ProShares UltraPro QQQ is the "only ETF that targets 3x the daily returns of the Nasdaq-100 Index."
In that vein, two popular choices among patient investors are the Vanguard S&P 500 ETF ( NYSEARCA:VOO) and the Vanguard Total Stock Market Index Fund ETF ( NYSEARCA:VTI). For minimal management fees and reliable dividends, you won't do much better than these two Vanguard funds. I'd call VOO and VTI smart-money picks, but which one is smarter for folks seeking long-term returns?
