ETF Battles: A Mag 7 Big Tech Growth Stock Duel with TECL vs. FNGU vs. MAGX!

has anyone watching bothered to look at the Bloomberg billionaires index well it's your snapshot of how people are making fortunes and among the top 10 billionaires there's a high concentration of wealth being created in one particular industry sector can you guess what it is yes it's technology and eight out of the world's 10 wealthiest billionaires made their fortune in this particular industry sector now today's ETF battle is an audience requested triple header contest between etf's focused on the technology sector this is going to be good stick around you're watching ETF battles I'm Ronda legi this is season six of our original series and if you're new to our Channel well welcome aboard be sure to hit that subscribe button and the like button if you've been enjoying our content also be sure to send us your ETF battle requests in the comment section below or on our X feed you send us those ticker symbols make it good and we'll take a look at it now also in the description section below I've got links to our program judges get in touch I've got links also to our program sponsor Direction who has been expanding their ETF lineup they've got a mess of single stock ETFs which have uh taken off in terms of popularity and trading volume and assets so check that out and uh let's get right to it now we've got today's audience requested ETF matchup given to us from t123 that's the viewer and it's a leverage Tech products between Ron Hill Rex shares and Direction and when we think about technology it encompasses so many themes from AI to blockchain to data storage and thank you so much Tio one 123 for this battle suggestion we've got mag X going up against uh fangu and so this is a good one helping us to sort through it we got Athan feras an ETF analyst with Bloomberg and Dave krines with ETF portfolio management judges great to have you back Hey Ron Athan it's battle time hey guys nice to see you both yeah so we got cost exposure strategy performance and mystery as the four categories we're going to blaze right through them give our judges an opportunity to weigh in at the end of the show we'll declare an overall winner keep in mind none of the battle outcomes on this program are ever predetermined or known in advance by myself or our judges the first category is cost let's kick things off with Dave Dave please get us started you know Ron we did our first epic fangu battle back in June 2020 and I called fangu the LeBron James of funds and now that Luca donik was just traded to the Lakers this month you know Lakers Showtime is back it's going to be amazing now on cost these three leverage Tech funds all charge about 95% and while that is far more than the unlevered SNP or NASDAQ 100 These levered funds give you two times to three times your principal exposure plus they offer more targeted position concentration which can be good at times and while the cost category could easily be a split decision I give the cost win to fangu for Superior total value and that said fangu is an etn which is an exchange traded note so investors must be aware of the factors regarding issuer risk and the maturity date all right well thank you for that strong start and uh taking a dig at Western Conference teams non- Laker teams I don't know how that's going to be received by the viewers but thank you very much Dave Athan you're up next on cost how do you see it well I am reporting from the East Coast over here you guys are on the west coast but um they're they're all a little on the higher end just keep in mind because they're all leverag they're anywhere from 94 to 95 basis points they're all in the same um category the reason they can charge a little bit more is because typically people won't hold this for a long time they're kind of in and out of it so the feed tends to be a little bit higher um fangu is the largest of it it's got 8 billion Tech's got three billion magx is pretty new uh it's only got a a few in it so because the headline expense ratio so close fangu trades the most it's got the best spread so I think from a total all-in cost I would also give this one to fangu um just because of its ability to because a lot of people want to trade this so you got to just make sure that it's a pretty it's pretty seamless so I I'll give this a overall cost to F you that takes us next to exposure strategy and Athan you're still up so break it down for us yeah so this is obviously it's all Tech Focus but it's they're all slightly a little bit different let's start with Fang use that's the Fang names if you remember that acronym we we acronyms right um but it's it's the Fang stocks plus a couple other so it's 10 stocks total very very concentrated it's Apple Amazon Nvidia those those types of names um so just keep in mind super concentrated portfolio then we'll go second to mag X which is pretty self-explanatory it's the mag 7 so that's Apple Microsoft Amazon meta Nvidia Etc again only seven stocks very very concentrated Tech is essentially going to be just 3x on uh xlk so yes it it'll still be kind of he weighted towards apple and Nvidia and Microsoft at the top but you're getting all the different all the S&P 500 Tech name in there so it's much more Diversified it's still within Tech uh the one thing to mention mag X is 2x the other three are three times or the other two are three times leverage just something to um keep in mind um I think frankly the way the industry is going it's going more towards more concentration right so if you want something that's very very concentrated um uh you're going to use fangu and magx uh but I think just given that Tech tends to be heavily weighted anyways you are getting some pretty topheavy exposure in tle anyways um I like mag X for exposure I think the the mag 7 you're getting that anyways in techos so I think it's just it's nice with mag X you can just focus in on that concentrations these bets have been paying off uh in the market being more concentrated that's just how the industry is going so I will give the exposure uh point to magx Dave you're up next how do you see it when it comes to exposure well all three of these funds have phenomenal exposure to Leading growth companies and as aan articulated fangu gives you three times leverage with equal exposure to 10 big liquid tech stocks which do change at Times mag X is two times leverage on the mag7 and tekle is three times leverage on the technology index and it's interesting to note of these three funds mag X is the only one that currently includes Tesla and investors should be super careful with risk assets especially when using leverage and even more so with extra position concentration at etfm we typically favor wildcard ETF symbol tqqq for the three times NASDAQ 100 which has broader diversification you know what was coming so I give the lever technology exposure win to wildcard tqqq and in its absence here I give the exposure win to fangu for three times exposure on Mega Cap Technology all right well that takes us next to Performance and uh Dave you're still up so break it down for us how do these three products match up now performance can be confusing when looking at multiple time frames and mag X only has one year of actual data so this chart shows over the past decade tekle ecl delivered 26 times your money or 40% annualized tekle even outperformed the American dream ETF tqqq which gave you almost 21 times your money and over the trailing fiveyear in one-ear periods fangu clearly stands out however all three of these funds got clobbered in 2022 down by 74 to 88% so bottom line is it's aough call all of these funds are spectacular and on a risk adjusted basis given the broader diversification I give the performance win to wildcard ETF tqqq and among these battle options I give the performance win to the LeBron James of funds fangu all right well thank you very much Dave uh aan you're up next give us your take on performance yeah like um David said uh fangu is uh tle is the oldest uh magx is pretty new that's only about a year old fangu is from 2018 it's kind of a fun fact at one point Tech was the best performing ETF of like all time obviously you can imagine right 3x Tech has been very very good um so over the long run it's been phenomenal um over the consist over the same time frame from when magx launched it's pretty much the same as Fang U again it's mostly the same stocks but like David said you're not getting Tesla the performance has been really really close um but wait a second isn't Tesla just wait a second isn't Tesla included in T's uh underlying index cuz that Tesla is part of the S&P 500 now no but it'll be um discretionary what do you mean I think it'll be in the in the consumer discretionary sector versus Tech will just be um xlk essentially so you're getting Amazon yeah um yeah it's kind of a but in the magx and and you'll you'll get it and so that doesn't necessarily just look at the S&P 500 makes sense yeah because Tesla's one of those weird companies that has it it's like is it consumer is IT Tech is it ex what is it because it's got its hands in so many things so that's a good point that you mentioned that just clarify that point again because it even got me confused Ethan yeah sure so about tech um a lot of people might be thinking you're going to get Tesla in there but just the way uh these classification system works Tesla's technically a discretionary stock so it would fall in the xly not the xlk and techco is 3xx xlk so just keep that in mind you'll get it in mag in the mag 7 but you you won't get Tesla in um in Tech it does traditionally fall in that sector um but on on the and then even just because you're getting more diversification with tle that actually hasn't worked to your favor since since their common Inception date but I think just it's been so hot right out of the gate and you rarely see that I want to I'm going to give it to magx the performance it's it's 20 a year old it's it's basically like fangu and I like fangu too it's been around for a long time it's performed really really well um but I like that I like this this 2x mag exposure uh it's coming hot right out of the gate so I'll give the performance uh just it's I like the new ETFs too and and very concentrated I'll give this one to mag X all right well that takes us to the mystery battle category this is where our judges can name a certain factor or any factor that they feel is crucial to today's contest so a what is your mystery battle category and which of these these products wins it sure I will um it's something that David alluded to earlier and that fangu is an etn and the other two are ETF so just a distinction for investors to just know that the etn is technically a note um you know Bank by backed in this case by Bank of Montreal it's nothing to really worry about these it's not like it was during the financial crisis these are very well uh you know capitalized and it's got8 billion in assets um but one thing interesting about that one it won't pay out any interest sometimes these lever stuff will still have a capital gain distribution or be paying out income you're not going to get that with the etn so just it's got a little bit of a tax Edge to it so I will give that mystery category to fangu just of its unique structure being an etn Dave you're up next give us your mystery battle category what is it and which of these products wins it well my mystery category is still position waiting and at etfm we could allocate up to 60% of our active strategies in tqqq while we would cap exposure to these other more concentrated funds closer to 20% so I give the position size win to wildcard tqqq for broader exposure and in its absence I'll call the position size a split decision well now we move to the part of the program where our judges can give us their overall battle winner so Dave you're up give it to us Ron to recap this leverage technology Love Fest these funds are all incredible they are all capable of delivering Sensational performance at times obviously given their risk people must have the right position size or use active risk controls to protect principal regardless go slowly and be super careful that said I do believe top leveraged funds and cryptocurrencies are the future of investing and it's very interesting to see how much the time period matters this past decade tekle beat tqqq however over the past 15 years tqqq strongly outperformed this graph shows tqqq delivered 215 times your money versus 133 for tekle so I give the leverage battle win to the more Diversified wild card tqqq and among these three amazing battle funds I give the win to fangu all right well uh Athan your final chance to weigh in with your overall winner give it to us I think Dave nailed at the end they're all great because they're all US tech right and it's been just it's a great thing to own uh no matter which one of these that you pick um I'm actually going to go the opposite of the diversification case that David said I want to be concentrated I I'll take the I'll take magx it's got Tesla in there too combined these end up having about a 35 or so percent weight of the S&P anyways right so you're sort of just getting the the top the top part of it um so I like that very concentrated basket um and it's only also 2x so yes it's concentrated but it's got a little bit less leverage than the other two so uh I think overall I'm going to give it to magx I like I like being concentrated uh when it comes to this type of stuff so uh overall uh mag X well our judges have spoken and just before I read off our battle scorecard Dave I want to confirm something with you uh you had mentioned tqqq as a wild card Choice do you feel more strongly about that than fangu I do you can have a much larger position there and in a crash environment fangu is going to be a bit more painful so tqqq would be the winner but fangu is definitely a very close second all right well our judges have spoken and according to my final battle scorecard the referee had to do a double check it's going to be a split decision between t triple q's and mag X and I think our judges laid out their arguments very well we had Dave of course uh he liked fangu for many reasons but in the end he he did defer to tqqq Q uh that's three Q's which uh which you know depending on the time frame you've been looking at you know it has underperformed or outperformed in various time frames but it has very very impressive performance historical performance of course we don't know in the future how it'll do but nevertheless that was his choice and then we've got uh aan favoring mag X which is a relatively new ETF uh focusing on those mag7 uh stocks and of course he made his uh his argument very strong in in favor of you know concentrated exposure now of course with all these products they do use daily leverage at resets on a daily basis and so that's something also to be aware of uh they are really designed as short-term trading instruments um so again great job by all of our judges laying out today's ETF battle and we couldn't have done it without you yeah think this was fun thank you Ron thanks Athan happy trading everyone well again thanks to Dave and aan for sharing your in timely insights and today's ETF Showdown keep up the good work uh be sure to visit the description section below for links to our judges and also while you're there check out the link to our program sponsor direction as I mentioned earlier lots of choices if you're looking at leveraged or leverage short and various iterations 2x 3x uh if you're looking for something Direction probably has it so be sure to check that out from single stock ETFs to broadly broader Diversified uh indexes as well as sector indexes just so many choices again be sure to visit direction.com to learn more a big thanks to t123 for this episode uh request and suggestion it was good what about you do you have any matchup uh in mind matchups in mind that you'd like to see well be sure to send us your ETF ticker symbols in the comment section below or on our X feed at ETF guide I'm Ronda Lei thanks for watching we'll see you on the next episode