[klodolph]

I realize I might have been mixing up QQQ with ultra pro QQQ… anyway, yeah, you can replicate QQQ. I was thinking of Ultra Pro QQQ.

[tombert]

I mean, even still, my point stays the same; if you have access to their strategies, I don't see why you can't just get the MCP to directly mimic that.

[klodolph]

Because it is not possible for you (personally) to buy the underlying components of leveraged ETFs.

[tombert]

Yeah, actually I think I was getting confused on some of the terminology. It looks like you're right.

Still, as you said, just mimicking regular QQQ is achievable.

[klodolph]

It’s achievable. It’s called “direct indexing”, and there are some extra costs associated with it, so for most investors, I think it is cheaper to get QQQ. You can flip that around with tax loss harvesting but I don’t understand that strategy and I can’t explain it.

You also don’t need AI to do this. Before AI, the main barrier to direct indexing was the amount of capital you need. That is still true.

[tombert]

I have enough capital to where I can do everything with the incremental share threshold of Interactive Brokers; as such I don't have to deal with the fees associated with normal direct indexing.

[klodolph]

Sure, but I wasn’t thinking of the brokerage fees. Things like the spread.