Better Leveraged ETF Buy: Is Tech-Heavy QLD or S&P 500-Focused SSO the Right Choice for Investors?
Key Points
QLD carries a higher expense ratio and a much lower yield compared to SSO.
QLD delivered a stronger one-year return but experienced a substantially deeper five-year drawdown.
Both funds use daily 2x leverage and track different indexes, leading to notable differences in sector exposure and risk.
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The ProShares - Ultra QQQ ETF (NYSEMKT:QLD) and the ProShares - Ultra S&P 500 ETF (NYSEMKT:SSO) both seek to double the daily returns of major U.S. equity indexes using leverage, but SSO tracks the S&P 500 while QLD tracks the Nasdaq-100.
This comparison explores the trade-offs between the two, including expenses, risk, recent returns, and portfolio makeup.
Snapshot (cost & size)
| Metric | SSO | QLD |
|---|---|---|
| Issuer | ProShares | ProShares |
| Expense ratio | 0.87% | 0.95% |
| 1-yr return (as of Feb. 2, 2026) | 23.67% | 29.85% |
| Dividend yield | 0.68% | 0.17% |
| Beta (5Y monthly) | 2.03 | 2.35 |
| AUM | $8 billion | $11 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
QLD charges a slightly higher expense ratio than SSO, making it less affordable for cost-conscious investors. SSO also offers a notably higher dividend yield, which may appeal to those seeking income from their leveraged ETF exposure.
That said, leveraged ETFs typically work best as short-term investments, so factors like fees and dividend income may not be top priority.
Performance & risk comparison
| Metric | SSO | QLD |
|---|---|---|
| Max drawdown (5 y) | -46.73% | -63.68% |
| Growth of $1,000 over 5 years | $2,601 | $2,403 |
What's inside
QLD aims to deliver twice the daily return of the Nasdaq-100 Index, allocating 53% of the portfolio to technology, 17% to communication services, and 13% to consumer cyclical stocks. With 101 companies, its top positions are Nvidia, Apple, and Microsoft, reflecting a strong tilt toward large-cap tech.
The fund's daily leverage reset means performance can diverge from expectations over periods longer than a single day, especially in volatile markets.
SSO, by contrast, tracks the S&P 500 with 503 holdings, offering a broader sector mix of 35% technology, 13% financial services, and 11% communication services.
Its largest positions are also Nvidia, Apple, and Microsoft, but with slightly lower weights. Like QLD, SSO resets its leverage daily, introducing similar compounding and volatility quirks.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Leveraged ETFs carry higher levels of risk than standard funds, but they can also be incredibly lucrative. Both of these funds aim to double the daily returns of their underlying indexes, but because they track different indexes, this results in vastly different risk profiles and earning potential.
SSO tracks the S&P 500, while QLD tracks the Nasdaq-100. Because the S&P 500 is more diversified, containing just over 500 holdings across all industries, it tends to be less volatile than the tech-focused Nasdaq-100.
To be clear, this doesn’t mean that SSO is necessarily a safe investment. Like QLD, its daily leverage reset means that it can experience lucrative gains or devastating losses, depending on how the underlying index is faring that day.
Because leveraged ETFs are generally short-term investments, their performance will vary greatly from day to day. But QLD’s tech-heavy focus could be a good fit for investors willing to take on more risk in exchange for greater earning potential, while SSO might be more appealing to investors seeking marginally more stability with a leveraged fund.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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