TQQQ: Only One Special Type of Investor Should Buy This ETF

Investing successful tech stocks is not for the faint of heart. The tech-heavy Nasdaq-100 scale has delivered much than 1,000% gains for investors successful the past 15 years. But buying shares of the world's astir innovative companies besides brings risk, volatility, and occasional large short-term declines.

The ProShares Ultra Pro QQQ (NASDAQ: TQQQ) offers investors a mode to get adjacent bigger returns from the Nasdaq-100 -- but with added risk. This is simply a leveraged ETF that uses borrowed wealth to bargain stocks. Its concern extremity is to present 3 times the regular show of the Nasdaq-100.

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When tech stocks person a bully day, this ETF tin enactment bigger numbers successful your brokerage account. But if the Nasdaq-100 scale declines oregon a tech bubble bursts, the powerfulness of leverage tin wounded your concern returns.

Let's instrumentality a person look astatine TQQQ and spot which investors should bargain it -- and who should enactment away.

The ProShares Ultra Pro QQQ is simply a leveraged ETF that magnifies the regular show of the Nasdaq-100. It has achieved mean yearly returns (by nett plus value) of 39.3% since the fund's inception successful February 2010. That fig is impressive.

During the past 5 years, TQQQ has gained astir 100% to outperform the Nasdaq-100, which has gained astir 87%. That's coagulated out-performance, but not arsenic stellar erstwhile you see the bigger declines successful TQQQ on the way. When you look astatine the show charts, this leveraged ETF goes done wider ups and downs than the Nasdaq-100 itself.

When tech stocks person a bully day, TQQQ goes adjacent higher. But erstwhile tech stocks spell down, TQQQ goes down adjacent more. In the past 5 years, TQQQ was down astir 69% astatine the extremity of December 2022, down astir 18% astatine the commencement of January 2024, and down astir 26% successful April 2025.

With a leveraged ETF, the highs are high, but the lows are low. Not each capitalist tin tummy specified large drawdowns.

So, who should bargain TQQQ? This money is simply a amended acceptable for nonrecreational investors and time traders. It lets those investors marque short-term bets based connected what they judge volition hap with the Nasdaq-100 successful the adjacent term. This ETF tin beryllium a conveyance for those higher-risk speculative trades.

But astir different investors should take antithetic banal ETFs. Here's why.

The past 16 years since the Global Financial Crisis and Great Recession person been exceptionally bully for tech banal investors. But if you look astatine the Nasdaq-100's longer-term show trend, the returns are little impressive.