Core Viewpoint - The ProShares UltraPro QQQ ETF (TQQQ) is a highly popular leveraged index fund that is based on the NASDAQ-100 index, utilizing significant leverage compared to the Invesco QQQ Trust (QQQ) [1] Group 1 - TQQQ is designed to provide three times the daily performance of the NASDAQ-100 index, making it a leveraged investment option [1] - The fund is favored by investors looking for amplified exposure to the technology sector and growth stocks represented in the NASDAQ-100 [1]

Core Viewpoint - The ProShares UltraPro QQQ ETF (TQQQ) is a highly popular leveraged index fund that is based on the NASDAQ-100 index, utilizing significant leverage compared to the Invesco QQQ Trust (QQQ) [1] Group 1 - TQQQ is designed to provide three times the daily performance of the NASDAQ-100 index, making it a leveraged investment option [1] - The fund's structure allows for amplified exposure to the technology and growth sectors represented in the NASDAQ-100 [1]

Core Viewpoint - The SEC has halted the review of new leveraged ETFs that provide more than 2x exposure to underlying securities, marking a significant regulatory intervention after a period of deregulatory actions [2][3]. Group 1: SEC Actions - The SEC sent warning letters to nine issuers, including Direxion, GraniteShares, and ProShares, requesting them to revise their strategies or withdraw their applications for leveraged ETFs exceeding 2x exposure [2]. - This action introduces the first regulatory hurdle for new product launches in months, following a series of proposals for 3x and even 5x leveraged strategies from various issuers [2][3]. Group 2: Market Context - The SEC's decision comes amid a surge in proposals for leveraged products, particularly those targeting volatile stocks like Nvidia, Coinbase Global, and Tesla, which have faced scrutiny under the agency's existing framework [3]. - Despite the growing interest in leveraged products, their performance has been inconsistent, with some ETFs experiencing significant losses [4]. Group 3: Performance of Leveraged ETFs - The ProShares UltraPro QQQ ETF (TQQQ), the largest leveraged ETF, has gained 40% this year, while others like the Defiance Daily Target 2X Long MSTR ETF (MSTX) and GraniteShares 2x Long COIN Daily ETF (CONL) have seen declines of 88% and 40%, respectively [5].