TQQQ
ProShares - UltraPro QQQ·Financial Services
77.84
1.157%(+0.89)
Market ClosedLast Updated: — ET
52W L: $33.5252W H: $79.68
ProShares - UltraPro QQQ·Financial Services
With the markets moving higher again, leverage has become all the rage on Wall Street. But dig into the numbers and you might find it's not such a good idea.
ProShares Ultra QQQ provides 2x daily leverage while ProShares UltraPro QQQ offers 3x daily leverage on the same underlying tech-heavy index. ProShares UltraPro QQQ has experienced a significantly deeper maximum drawdown of 81.80% compared to the 63.80% seen by ProShares Ultra QQQ.
One fund boasts steadier returns and broader diversification, while the other delivers sharper gains - and steeper drawdowns - in recent years.
The ProShares UltraPro QQQ has delivered an average annual return of 39.3% over 16 years. During declines in the Nasdaq-100 index, this leveraged ETF gets hit three times as hard.
There's been a lot of upbeat change in the Nasdaq since the last time Kevin Davitt (@nasdaq) appeared on our network in March. He examines the index's outperformance over recent years and how it compares to historical trends.
Leveraged exchange-traded funds deliver a daily multiple of an underlying index's return, using swaps and futures to reset exposure every session.