ProShares UltraPro QQQ

The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the fund's investment objective. The index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization. The fund is non-diversified.

TQQQ is a 3x leveraged ETF that tracks the Nasdaq-100. When timed right, it gives investors the opportunity to generate excellent returns over a very short time period. Despite the potentially high risk, I therefore rate TQQQ a buy if investors manage risk accordingly. In this piece, I will break down how I am approaching this challenge and what potential and existing investors might need to look out for.

TQQQ: Patience Is Required For Outperformance

We have highlighted 10 ETFs that have seen higher average volumes in the third quarter and are thus the top 10 funds in terms of trading volume.

10 Most Heavily Traded ETFs of Q3

TQQQ offers triple the daily returns of the Nasdaq 100, suitable for short-term trading but risky for long-term holding due to volatility decay. Leveraged ETFs like TQQQ face high volatility and daily rebalancing effects, making them inappropriate for buy-and-hold investors. TQQQ's 0.88% expense ratio is fair for its speculative nature but adds to the long-term underperformance risk.

Leveraged Exposure To The Nasdaq 100 Via TQQQ: Is It Worth The Risk?

Exchange-traded funds (ETFs) are typically considered to be suitable investments for retail investors who have a hands-off approach. The built-in portfolio diversity inherent to many of these funds and the ability to hand over management of a fund's basket of securities to a team of professional managers appeal to beginning investors and those not eager to involve themselves in the business of regular trading.

3 Leveraged ETFs to Multiply Returns

The ProShares UltraPro QQQ (TQQQ) and ProShares UltraPro Short QQQ (SQQQ) ETFs moved in different directions on the first trading day of September.  SQQQ surged by over 9.15% while the TQQQ fund crashed by a similar amount.

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ProShares UltraPro QQQ
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