More aggressive investors will be interested in our Nasdaq 100 model. The Nasdaq 100 includes 103 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market. The index is generally considered the world's technology bellwether with all of the major technology stocks from Apple to chipmaker Xilinx traded on its exchange. Our model uses the ETF 'QQQ' during risk-on periods and the Vanguard Long-Term U.S. Treasury mutual fund 'VUSTX' during risk-off (also available as an ETF 'VGLT'). An initial $50,000 invested in our model on March 11th, 1999 (the inception of 'QQQ') would now be worth $2,833,664--an annual return of over 21.1%. For buy-and-hold investors, their account would have a net profit of just $204,570 as of April 5, 2020--an annual return of just over 6.9%.
Furthermore, the maximum drawdown for our Nasdaq 100 model is just -14.8%, far less than a buy-and-hold investor that would have endured a staggering -82.98% drawdown in the dot.com crash!