TQQQ Delivers Bigger Gains Than SPXL Over Five Years

Direxion Daily S&P 500 Bull 3X Shares (NYSEMKT:SPXL) and ProShares - UltraPro QQQ (NASDAQ:TQQQ) are leveraged exchange-traded funds (ETFs) designed for traders seeking amplified daily returns. SPXL tracks the broader S&P 500 index, while TQQQ aims for triple the daily performance of the more volatile Nasdaq-100. Here’s how they stack up across cost, performance, risk, and what’s inside.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; figures are based on calendar-day windows.

TQQQ carries a slightly lower expense ratio. Both funds offer a modest yield, so cost and payout may not be significant differentiators here.

Performance & risk comparison

What's inside

ProShares - UltraPro QQQ amplifies the performance of the Nasdaq-100 Index, which is heavily weighted toward technology (54%), communication services (16%), and consumer cyclical stocks (13%). With 123 holdings, its largest positions include Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). The fund has been operating for 15.7 years and, like most leveraged products, resets its leverage daily.

By contrast, SPXL draws from a broader U.S. equity base, with technology comprising 35%, followed by financial services and consumer cyclical at 13% and 11%, respectively (sector weights as of Nov. 3, 2025). Its top holdings mirror the S&P 500’s largest names, again featuring Nvidia, Apple, and Microsoft. Both funds share the daily leverage reset quirk.

For more advice on ETF investing, check out the full guide at this link.

Foolish take

The last 5 years provided an unusually clear example of the upsides and downsides of volatility. The inflation-based market crisis of 2022 was excruciating for TQQQ investors, while the artificial intelligence (AI) boom also pushed the same fund dramatically higher in the last three years. Over that shorter period, TQQQ nearly doubled SPXL's returns.

So TQQQ may not be your cup of tea if you prefer predictable gains over sudden price swings in either direction. Both funds carry warnings about the long-term risks of leveraged ETFs, insisting they were created to meet the needs of day-trading speculators.

At the same time, the trading inefficiencies of these leveraged ETFs may be forgiven when you consider how much they have outperformed their unleveraged counterparts in the very long run.

Once you've decided to buy a leveraged ETF, the specific fund choice largely comes down to your risk tolerance. TQQQ carries more risk and richer potential rewards than the milder S&P 500 fund. I wouldn't invest my entire nest egg in any leveraged fund, but a small bet on TQQQ or SPXL can be a thrilling addition to a diversified portfolio.

Glossary

Leveraged ETF: An exchange-traded fund using financial derivatives to amplify daily returns, often by 2x or 3x the index.
S&P 500: A stock market index tracking 500 large U.S. companies across various industries.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq exchange, heavily weighted toward technology.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its price.
Beta: A measure of an investment's volatility compared to the overall market; higher beta means greater risk and potential reward.
AUM (Assets Under Management): The total market value of assets managed by a fund.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a set leverage ratio.
Holdings: The individual securities or assets owned by a fund.
Sector weights: The percentage of a fund’s assets allocated to specific industry sectors.

Anders Bylund has positions in Nvidia and ProShares Trust - ProShares UltraPro Qqq. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.