Successful ETF Investing

03/13/2017 7:00 am EST

Focus: MARKETS

Jim Woods

Editor, Successful Investing and Intelligence Report

The only thing that really matters to this market right now is the Trump pro-growth agenda. And if you are nearly fully invested in this market, as we are, then you are riding this Trump-on market higher. 

The ProShares Ultra QQQ (QLD) and the ProShares Ultra Financials (UYG) are leveraged funds, and both are designed to offer twice the daily performance of their respective indices. 

QLD is effectively a double-down long bet on large-cap tech stocks in the NASDAQ 100; the QQQ is up 10.5% year to date while the two-beta QLD is up 21.5%. UYG is a virtual double-down long bet on large-cap financial stocks in the Dow Jones U.S. Financials Index. 

Both tech and financials currently are benefitting from the fast-money Trump trade rotation. In the case of tech, the prospects of economic growth are driving the sector higher. In financials, we have the prospects of economic growth and the growing certainty of a Fed rate hike. 

Remember, these new buys are in the Aggressive Portfolio only. It is in this portfolio that we can take greater risk for greater reward by buying into fast-money sectors with leveraged ETFs. 

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