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TQQQ ProShares UltraPro QQQ

Category: Leveraged Equities

Inception: 2010-02-09 Issuer: Proshare Advisors LLC
Net Assets
$19.6B
Expense Ratio
N/A
# of Holdings
114
Average Daily Volume
96.22M

Fund Overview

The ProShares UltraPro QQQ (TQQQ) is a leveraged ETF designed to deliver three times the daily performance of the Nasdaq-100 Index. This ETF is ideal for investors seeking amplified exposure to the largest non-financial companies listed on the Nasdaq Stock Market, including tech giants like Apple, Microsoft, and Amazon. TQQQ achieves its leveraged returns through the use of financial derivatives, primarily futures and swaps, rather than holding the underlying stocks directly. Due to its leveraged nature, TQQQ is best suited for short-term trading strategies rather than long-term buy-and-hold investing, as the compounding of daily returns can lead to significant deviations from the expected long-term performance.
Asset Class
Equity
Industry
Broad Technology
Annual Dividend Rate
Smart Beta
No
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - N/A
Currency Hedged
No
Portfolio Turnover
168 %
Dividend Date

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Why Invest in the TQQQ ETF?

Potential Benefits

  • Provides 3x leveraged daily exposure to the Nasdaq-100 Index, allowing for amplified returns in bullish market conditions.
  • Offers liquidity with high trading volumes, ensuring tight bid-ask spreads for traders.
  • Diversified exposure to leading technology and growth-oriented companies.
  • No margin requirements, unlike traditional leveraged positions.
  • Can be used for short-term tactical plays or hedging strategies.

Potential Risks

  • Leveraged ETFs are highly volatile and can experience significant losses in declining markets.
  • Daily reset mechanism can lead to performance decay over time, especially in volatile or sideways markets.
  • Not suitable for long-term holding due to compounding effects.
  • Higher expense ratio compared to non-leveraged ETFs.
  • Performance may deviate significantly from the underlying index over extended periods.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
+19.16% +21.85% +161.27% +341.40% +125.83% +12.10% +35.23% +66.68% +28355.75%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 +2.4% -8.3% -15.7% +40.6% - - - - - - - -
2025 +4.5% -9.4% -23.3% -4.2% +27.6% +18.9% +6.3% +1.3% +15.8% +12.9% -6.5% -3.2%
2024 +3.8% +14.7% +2.3% -14.3% +18.6% +18.5% -7.5% +0.5% +6.0% -4.2% +15.0% -0.6%
2023 +32.4% -3.4% +28.5% 0.0% +23.0% +18.4% +10.5% -6.3% -15.8% -8.0% +33.8% +16.1%
2022 -25.7% -15.2% +10.9% -37.2% -9.5% -27.4% +39.0% -16.6% -30.5% +8.4% +12.5% -26.2%
2021 -0.5% -1.4% +2.3% +18.0% -4.7% +19.4% +8.4% +12.6% -16.7% +24.6% +5.4% +1.7%
2020 +8.2% -17.8% -38.1% +46.5% +18.6% +18.0% +22.3% +35.2% -18.9% -10.3% +34.5% +15.0%
2019 +26.9% +8.6% +11.1% +16.6% -24.0% +23.0% +6.2% -7.8% +1.9% +12.4% +12.2% +11.4%
2018 +27.7% -6.2% -13.4% -0.4% +17.0% +2.2% +7.6% +17.7% -1.6% -26.6% -2.9% -26.8%
2017 +15.8% +13.4% +5.6% +8.1% +11.4% -8.1% +12.6% +5.0% -1.1% +13.7% +5.5% +1.2%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
MSFT MICROSOFT CORP 7.4 %
AAPL APPLE INC 7.2 %
NVDA NVIDIA CORP 6.6 %
AMZN AMAZON.COM INC 5.1 %
AVGO BROADCOM INC 3.4 %
META META PLATFORMS INC CLASS A 3.1 %
COST COSTCO WHOLESALE CORP 2.8 %
NFLX NETFLIX INC 2.6 %
GOOGL ALPHABET INC CLASS A 2.4 %
GOOG ALPHABET INC CLASS C 2.3 %
Top 10 holdings shown, out of 114 total holdings.

Related ETFs: TQQQ vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
QLD ProShares Ultra QQQ N/A $6.5B 108 Equity
QQQ Invesco QQQ Trust Series I 0.20 % $297.5B 102 Equity
ROM ProShares Ultra Technology N/A $540.3M 72 Equity
SOXL Direxion Daily Semiconductor Bull 3x Shares N/A $7B 31 Equity
SPXL Direxion Daily S&P 500 Bull 3X Shares N/A $4B 507 Equity
SQQQ ProShares UltraPro Short QQQ N/A $2.5B 9 Equity
TECL Direxion Daily Technology Bull 3X Shares N/A $2.2B 70 Equity
UDOW ProShares UltraPro Dow30 N/A $641M 37 Equity
UPRO ProShares UltraPro S&P500 N/A $3.3B 512 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

TQQQ seeks to deliver 3x the daily return of the Nasdaq-100 Index by using financial derivatives such as futures contracts, swaps, and other instruments. The fund does not directly hold the underlying stocks of the index but instead relies on these derivatives to achieve its leveraged exposure. The Nasdaq-100 Index is market-cap weighted and includes 100 of the largest non-financial companies listed on the Nasdaq. TQQQ rebalances its positions daily to maintain consistent leverage, which can lead to compounding effects over time.

Frequently Asked Questions

Is TQQQ suitable for long-term investing?

No, TQQQ is designed for short-term trading due to the effects of daily leverage reset, which can lead to significant performance deviations over extended periods.

How does TQQQ achieve its 3x leverage?

TQQQ uses derivatives like futures and swaps to amplify daily returns rather than holding the underlying stocks directly.

What is the main risk of holding TQQQ?

The primary risk is volatility decay, where compounded daily returns can erode gains or magnify losses in choppy or declining markets.

How does TQQQ compare to QQQ?

QQQ provides unleveraged exposure to the Nasdaq-100, while TQQQ offers 3x daily leverage, making it much more volatile and risky.

Can TQQQ go to zero?

While unlikely, extreme market conditions could theoretically cause significant losses, though the fund would typically undergo a reverse split before reaching zero.

Industry Overview

The TQQQ ETF provides leveraged exposure to the Nasdaq-100 Index, which is heavily weighted toward the technology sector. Investing in leveraged ETFs like TQQQ is generally more appropriate for experienced traders who understand the risks and mechanics of daily leverage reset. The technology sector, which dominates the Nasdaq-100, is known for its high growth potential but also comes with elevated volatility. TQQQ can be a powerful tool for those looking to capitalize on short-term bullish trends in tech stocks, but it requires careful risk management due to its amplified downside potential.

Alternative Comparison

Compared to its closest peers, TQQQ stands out for its 3x leverage on the Nasdaq-100, whereas QLD offers 2x leverage and QQQ provides unleveraged exposure. Unlike SQQQ, which is a 3x inverse ETF designed to profit from Nasdaq-100 declines, TQQQ is purely bullish. While TQQQ has a higher expense ratio (0.95%) than QQQ (0.20%), its amplified returns can justify the cost for short-term traders. Some competitors like SOXL focus on semiconductor stocks, but TQQQ provides broader tech exposure.

Issuer Overview

ProShares is a leading provider of leveraged and inverse ETFs, offering a wide range of products designed for tactical trading strategies. The firm is known for its expertise in derivatives-based strategies, enabling investors to gain leveraged, inverse, or hedged exposure to various market segments. ProShares has a strong track record in managing leveraged ETFs, though these products are inherently riskier than traditional ETFs.

Conclusion

TQQQ is a high-risk, high-reward ETF designed for traders seeking amplified exposure to the Nasdaq-100 Index. Its 3x daily leverage makes it a powerful tool for short-term bullish bets on tech stocks, but it is not suitable for long-term investors due to volatility decay. Investors should thoroughly understand the mechanics of leveraged ETFs before trading TQQQ and consider implementing strict risk management strategies.

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