Latest Filings Reveal: Investment Manager Adds Leveraged ETF TQQQ to Core Holdings
Key Points
Added 31,361 shares in TQQQ, estimated at ~$2.86 million based on the quarterly average price
Post-trade stake: 682,781 shares valued at $70.60 million
TQQQ is now 16.7% of fund AUM, the fund's 2nd-largest holding
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On October 20, 2025, McElhenny Sheffield Capital Management, LLC disclosed a buy of 31,361 shares in ProShares UltraPro QQQ (NASDAQ:TQQQ), an estimated $2.86 million trade for the period ended September 30, 2025.
What Happened
According to a filing with the Securities and Exchange Commission dated October 20, 2025, the firm increased its position in ProShares UltraPro QQQ by 31,361 shares. The estimated transaction value, based on the period’s average share price, was approximately $2.86 million. The fund’s total TQQQ position at quarter-end was 682,781 shares, worth $70.60 million.
What Else to Know
The buy lifts TQQQ to 16.7% of the fund’s $421.95 million reportable AUM.
Top holdings post-filing:
- MSMR: $101.54 million (24.1% of AUM) as of September 30, 2025
- TQQQ: $70.60 million (16.7% of AUM) as of September 30, 2025
- QQQ: $57.74 million (13.7% of AUM) as of September 30, 2025
- SPY: $38.84 million (9.2% of AUM) as of September 30, 2025
- ITA: $22.81 million (5.4% of AUM) as of September 30, 2025
As of October 20, 2025, shares were priced at $107.89, up 43.8% over the year ending October 20, 2025; shares have outperformed the S&P 500 by 33.3 percentage points over the same period.
ETF Overview
| Metric | Value |
|---|---|
| Price (as of market close October 20, 2025) | $107.89 |
| Dividend yield | 0.73% |
| 1-year total return | 43.8% |
ETF Snapshot
Structured as a non-diversified fund; investors should consider the impact of leverage when evaluating it.
Seeks to provide daily investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the Nasdaq-100 Index.
Primarily used by investors seeking amplified exposure to large-cap technology and growth stocks.
The fund employs derivatives and other financial instruments to achieve its stated objective, offering leveraged exposure to the Nasdaq-100 Index. This approach can result in amplified gains or losses over short holding periods.
Foolish Take
The recent purchase of nearly $2.9 million shares of ProShares UltraPro QQQ (TQQQ) by Dallas-based investment management firm McElhenny Sheffield is another example of institutional support for the tech sector. Here's why, and what investors can learn from it.
First off, the TQQQ is a leveraged ETF. The fund seeks to triple the return of the QQQ ETF, which itself is a passively-managed ETF tracking the tech-heavy Nasdaq-100 index. So, in effect, the TQQQ is designed to generate a 3x return of the Nasdaq-100.
However, due to multiple factors, including management fees, the true return of the fund over the long term tends to be lower than 3x.
For example, over the last ten years, the TQQQ has generated a total return of 2,360%, equating to a compound annual growth rate (CAGR) of 37.7%. Meanwhile, the QQQ has generated a total return of about 500% and a CAGR of 19.6%.
In any event, while this transaction by McElhenny Sheffield does reinforce the thesis that institutional investors remain bullish on the tech sector, retail investors shouldn't blindly chase outsized returns through leveraged ETFs like the TQQQ. Remember, leveraged funds can deliver outsized losses in the same way that they deliver outsized returns -- making corrections sharp and painful.
It's for this reason that retail investors would be wise to exercise caution with the TQQQ.
Glossary
13F AUM: Assets under management reported in a fund's quarterly SEC Form 13F filing, covering certain U.S. securities.
Reportable AUM: The portion of a fund's total assets that must be disclosed in regulatory filings, such as Form 13F.
Stake: The total ownership or investment a fund holds in a particular security or company.
Non-diversified fund: A fund that invests in a limited number of securities, increasing exposure to specific assets or sectors.
Leverage: The use of borrowed capital or derivatives to amplify investment returns, which also increases risk.
Derivatives: Financial instruments whose value is based on the price of an underlying asset, such as options or futures.
Dividend yield: Annual dividends paid by a security as a percentage of its current price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
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Jake Lerch has positions in Invesco QQQ Trust. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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