Disclaimer: I am not qualified to give investment advice, I’m just an average tech worker who spent some amount of time on bogleheads forums.
replyI personally don’t invest more in tech than I need to via broad index funds (and I certainly never keep my RSUs in the company stock, I always sell immediately). Otherwise, if there is a sector-wide downturn, I’d be triple exposed - my paycheck, my tech investments, and my company stock. That seems like a lot of risk to take on.
I’m open to other opinions here.
Which game would you rather play:
reply A. Guaranteed $1,000 each month
B. Every month, flip a coin. Heads gains $5,000, tails you lose $1,000.
To me, that's SPY vs. QQQ. Tech in general has higher expected return, but more volatility. If you can handle the volatility, then QQQ is better. If not, then not.
Ultimately, I'm taking a bet on tech because I believe tech has the greatest chance of improving the economy/world.
[I'm also not qualified, so do your own research]
For other's interested in leveraged ETFs please see this excellent piece from Ben Felix: https://youtu.be/E7pl0tqzIUQ?si=py-3Uy1wb_yG3e5U
replyNeither QQQ nor SPY is a leveraged fund.
reply