QLD and SPXL Offer Distinct Leverage for Growth Investors

SPXL and QLD are both leveraged ETFs, but SPXL targets triple the S&P 500’s daily move while QLD seeks double the Nasdaq-100, leading to different sector tilts and risk profiles.

Direxion Daily S&P 500 Bull 3X Shares (NYSEMKT:SPXL) is built to deliver three times the daily performance of the S&P 500 Index, offering amplified exposure to a broad swath of U.S. large caps. ProShares - Ultra QQQ (NYSEMKT:QLD) aims for double the daily returns of the tech-focused Nasdaq-100. Both funds use daily leverage resets and are designed for investors seeking short-term, high-octane exposure, but their underlying holdings and sector weights differ significantly.

ETF Snapshot

Beta measures price volatility relative to the S&P 500.

SPXL is slightly more affordable on fees, while QLD’s yield is notably lower. The cost difference is marginal, but income-focused investors may notice QLD’s smaller payout.

Performance & Risk Comparison

What's Inside

QLD delivers 2x leveraged exposure to the Nasdaq-100, with a portfolio heavily tilted toward technology (54%), followed by communication services (16%) and consumer cyclical (13%) as of Oct. 28, 2025. The fund holds 121 companies, with top positions in Nvidia, Apple, and Microsoft. With a 19.4-year track record, QLD ranks among the longest-running leveraged ETFs. Like most leveraged funds, it resets exposure daily, which can impact returns if held longer than a single day

SPXL, by contrast, seeks triple the daily return of the S&P 500 and spreads assets across 516 holdings. Its largest positions mirror the S&P 500, with Nvidia, Apple, and Microsoft each representing a much smaller weight compared to QLD. Both funds employ a daily leverage reset, which can affect long-term results due to compounding.

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Foolish Take

While both of these funds deliver leverage-powered returns to investors, there are some key differences.

First off, the QLD's tech-heavy focus contrasts with the SPXL's more diverse range of stocks. That said, the funds share a similar performance history since the QLD employs 2x leverage, while the SPXL uses 3x. Consequently, the two funds have a very similar year-to-date performance of 38.3% for the QLD and 34.0% for the SPXL.

On a longer timeframe, the SPXL has actually outperformed the QLD. The SPXL has generated a five-year total return of 366%, equating to a compound annual growth rate (CAGR) of 36.1%. Meanwhile the QLD has a five-year total return of 252%, with a CAGR of 28.6%. Both funds easily beat the five-year performance of the S&P 500, which has generated a total return of 123%, with a CAGR of 17.4%.

To sum up, both funds are diversified ways to gain leveraged exposure to benchmark indexes like the S&P 500 and Nasdaq-100. However, these funds do come with risk, including high fees and extreme volatility. Remember, leverage works both ways, and each of these funds have seen drawdowns in excess of 60% in the last five years.

Glossary

Leveraged ETF: An exchange-traded fund using financial derivatives to amplify daily returns of an underlying index.
Daily reset: The process of rebalancing a leveraged ETF’s exposure at the end of each trading day.
Expense ratio: Annual fee, expressed as a percentage of assets, that investors pay to cover a fund’s operating costs.
Dividend yield: Annual dividends paid by a fund divided by its current share price, shown as a percentage.
Beta: A measure of an investment’s volatility compared to the overall market, typically the S&P 500.
AUM (Assets Under Management): The total market value of assets a fund manages on behalf of investors.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: A stock market index tracking 500 large-cap U.S. companies across various industries.
Consumer cyclical: Companies whose sales and profits tend to rise and fall with the economic cycle, like retailers and automakers.
Leverage: The use of borrowed money or derivatives to increase the potential return of an investment.
Holdings: The individual stocks or assets owned within a fund or portfolio.

Jake Lerch has positions in Nvidia. 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.