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by klodolph 13 days ago
Because it is not possible for you (personally) to buy the underlying components of leveraged ETFs.
1 comments

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.

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.

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