TQQQ and SSO Aim for Above-Average Returns, But There's a Clear Winner for Investors

Core Insights - SSO and TQQQ are both leveraged ETFs designed for short-term traders seeking amplified index exposure, with SSO targeting 2x daily returns of the S&P 500 and TQQQ aiming for 3x daily returns of the Nasdaq-100 [5][6][8] - TQQQ has a higher concentration in technology (55% of total assets) compared to SSO, which has a more diversified sector mix [2][5] - Despite TQQQ's higher potential returns, it has exhibited greater volatility and downside risk, with a five-year max drawdown nearly double that of SSO [3][7][8] Fund Performance - Over the past five years, both SSO and TQQQ have roughly doubled an initial investment of $1,000, but SSO achieved this with less severe declines [3][6] - TQQQ's one- and five-year total returns are nearly identical to SSO's, despite experiencing much more volatility [7][8] Investment Considerations - Both funds are high-risk, high-reward investments, but SSO has been the stronger performer in recent years [6][8] - TQQQ offers advantages for fee-conscious and income-driven investors due to its lower expense ratio and higher yield, but these factors primarily benefit long-term investors [4][6]