TQQQ vs. QLD: Which High-Risk, High-Reward Leveraged ETF Is the Better Buy for Investors?

Core Insights - The article compares two leveraged ETFs, ProShares Ultra QQQ (QLD) and ProShares UltraPro QQQ (TQQQ), focusing on their structure, risk profile, and performance for investors seeking Nasdaq-100 exposure [1][2]. Cost & Size - QLD has an expense ratio of 0.95% and TQQQ has a lower expense ratio of 0.82% - As of December 22, 2025, QLD's one-year return is 28.60% while TQQQ's is 30.72% - TQQQ offers a higher dividend yield of 0.72% compared to QLD's 0.18% - TQQQ has a larger assets under management (AUM) of $30.9 billion versus QLD's $10.6 billion [3]. Performance & Risk Comparison - Over the last five years, QLD experienced a maximum drawdown of -63.68%, while TQQQ faced a more severe drawdown of -81.65% - An investment of $1,000 would have grown to $2,564 with QLD and $2,500 with TQQQ over the same period [4]. Portfolio Composition - TQQQ holds 101 positions, with a focus on technology (55%), communication services (17%), and consumer cyclical (13%) - Major holdings in TQQQ include Nvidia, Apple, and Microsoft [5]. Investment Strategy - Both QLD and TQQQ are designed for short-term investments due to their daily leverage reset mechanism, which can lead to significant divergence from the underlying index if held long-term [6][10]. - TQQQ's higher leverage factor aims for three times the daily return, making it potentially more lucrative but also riskier compared to QLD, which targets two times the daily return [8]. Recent Performance Trends - Despite TQQQ's higher risk profile, its 12-month returns have only marginally outperformed QLD, and it has underperformed QLD over the last five years [9].