The FNGU Advantage

There is a reason I like FNGU as a trading instrument. It is very elegantly designed. It is the 3x leverage of the FANG+ big tech stocks. The 10 stocks are

META

AAPL

AMZN

NFLX

GOOGL

TSLA

NVDA

MSFT

BABA

BIDU

Each of these 10 stocks have 10% weight within FNGU and the instrument itself is 3x leveraged.

I like it because it is elegant. But I mostly like it because it gives great returns. FNGU is up +39% over 1 month.

That compares with the following returns on the individual stocks:

META +11% (down -6% after hours probably because of SNAP poor results)

AAPL +18%

AMZN +17%

NFLX +27%

GOOGL +7%

TSLA +25%

NVDA +14%

MSFT +7%

BABA +3%

BIDU +3%

Yes, all the 10 stocks were up over 1 month so there was nothing dragging FNGU down. In this situation we can see how strong FNGU can be.

The beauty of FNGU is that even if s few of the 10 are down, FNGU may generate a positive ROI. And I do not have to guess which of the 10 will do well and which ones will not do well. I can buy the 10 within the basket and FNGU will deliver the returns for me. Of course, I need to be clear and have conviction on the bullish trend. Otherwise, the results can be dramatically opposite.