Compare and contrast key facts about ProShares UltraPro QQQ (TQQQ) and Invesco QQQ (QQQ).
TQQQ and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TQQQ is a passively managed fund by ProShares that tracks the performance of the NASDAQ-100 Index (300%). It was launched on Feb 9, 2010. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both TQQQ and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TQQQ or QQQ.
Average Return. In the past year, QQQ returned a total of 29.14%, which is significantly lower than TQQQ's 78.85% return. Over the past 10 years, QQQ has had annualized average returns of 18.19% , compared to 36.33% for TQQQ. These numbers are adjusted for stock splits and include dividends.
QQQ tracks the Nasdaq-100 Index passively, while TQQQ is highly levered. TQQQ seeks daily returns that are three times those of the QQQ (before fees and expenses.) QQQ experiences smaller price fluctuations and is considered to be less risky than TQQQ.
ProShares UltraPro QQQ had a return of 24.87% year-to-date (YTD) and 111.05% in the last 12 months. Over the past 10 years, ProShares UltraPro QQQ had an annualized return of 38.12%, outperforming the S&P 500 benchmark which had an annualized return of 10.90%.
SPY - Volatility Comparison. ProShares UltraPro QQQ (TQQQ) has a higher volatility of 14.51% compared to SPDR S&P 500 ETF (SPY) at 3.37%. This indicates that TQQQ's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure.
TQQQ - Performance Comparison. In the year-to-date period, QLD achieves a 17.76% return, which is significantly lower than TQQQ's 24.59% return. Over the past 10 years, QLD has underperformed TQQQ with an annualized return of 30.90%, while TQQQ has yielded a comparatively higher 38.24% annualized return.
TQQQ's triple leverage can significantly magnify losses. As a result, it is a highly volatile investment and is generally considered unsuitable for long-term investing.
Leveraged ETF prices tend to decay over time, and triple leverage will tend to decay at a faster rate than 2x leverage. As a result, they can tend toward zero.
While the Fund has a daily investment objective, you may hold Fund shares for longer than one day if you believe it is consistent with your goals and risk tolerance. For any holding period other than a day, your return may be higher or lower than the Daily Target.
TQQQ has a dividend yield of 1.07% and paid $0.70 per share in the past year. The dividend is paid every six months and the last ex-dividend date was Mar 20, 2024.
Due to the daily reset feature, holding the fund for longer than a single day will result in compounding of returns and results that are likely to significantly differ from the target return.
QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis. The Nasdaq 100 has consistently outperformed the S&P 500 in terms of total returns, making it a favorable choice for long-term investors.
The S&P 500 tracks the 500 largest public U.S. companies, so the Vanguard S&P 500 ETF contains roughly five times as many companies as the Invesco QQQ ETF. This allows the Vanguard S&P 500 ETF to cover a lot more ground with a single investment.
The performance of an investment option is often one of the most critical aspects investors consider. TQQQ is a leveraged ETF that aims to generate 3x the performance of the Nasdaq 100 Index. As a result, since QQQ tracks the performance of the Nasdaq 100 index, we expect TQQQ to generate higher returns than QQQ.
The QQQ ETF offers buy-and-hold investors low expenses and long-term growth potential with enough diversification to avoid the risks of betting on one company. On the downside, long-term investors in QQQ must deal with sector risk, possible overvaluation, and the absence of small caps.
TQQQ's objective is to deliver triple the daily returns of the. The top sectors of the index include Information Technology, Communication Services, Consumer Discretionary.
Introduction: My name is Jonah Leffler, I am a determined, faithful, outstanding, inexpensive, cheerful, determined, smiling person who loves writing and wants to share my knowledge and understanding with you.
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