QLD vs. SSO: Which 2x Leveraged ETF Is Best for Investors Right Now?

The ProShares Ultra QQQ ETF (NYSEMKT:QLD) and the ProShares Ultra S&P 500 ETF (NYSEMKT:SSO) both offer 2x daily leveraged exposure, but they differ in underlying index, sector concentration, and risk-return profile.

Both funds aim for double the daily performance of major U.S. indexes -- the Nasdaq-100 for QLD and the S&P 500 for SSO -- making them tools for aggressive traders or tactical investors. This matchup examines their costs, returns, risk, and portfolio makeup to clarify which may appeal depending on your outlook and risk tolerance.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.

SSO is slightly more affordable on fees, with a 0.87% expense ratio versus QLD’s 0.95%, and it also offers a higher dividend yield. Leveraged ETFs are generally only used as short-term investment vehicles -- so fees and yield may not be the primary factors most investors consider -- but they can still matter for those seeking any regular income from this type of investment.

Performance & risk comparison

What's inside

QLD targets two times the daily return of the Nasdaq-100, resulting in a portfolio that is 55% technology, 15% communication services, and 13% consumer cyclical stocks.

It holds 101 positions, with top allocations to Nvidia, Apple, and Microsoft. With nearly two decades of history, QLD’s strong tech tilt and daily leverage reset can mean both higher upside and sharper losses, especially during volatile periods.

SSO provides 2x daily S&P 500 exposure, spreading risk across 503 holdings. Its portfolio is also tech-heavy (35%), but the sector tilt is not as strong as QLD's. The fund's top holdings mirror QLD’s, but SSO’s broader sector mix may offer a bit more diversification.

Both funds’ daily leverage reset means long-term returns can diverge from the underlying index over time, especially if markets are volatile.

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

Foolish take

Leveraged ETFs are higher-risk, higher-reward investments often used by short-term traders. With their 2x daily leverage, they can be incredibly lucrative when their underlying indexes are thriving -- but the drawdowns are also much more severe during periods of volatility.

While both of these funds carry more risk than many other ETFs, QLD is the more volatile of the two. It's experienced a more severe max drawdown over the past five years, and with a higher beta, it's also more prone to price fluctuations. Its smaller portfolio and more significant tilt toward the tech sector also result in less diversification and higher risk.

SSO, by contrast, offers more diversification with exposure to the S&P 500. It's experienced less volatility in recent years compared to QLD, but its one-year returns are also fairly substantially lower at 18% compared to QLD's 32%.

Where you choose to invest will depend mostly on your tolerance for risk. All leveraged ETFs will carry more risk than your average fund, but a tech-focused investment like QLD can offer higher risk in exchange for higher potential earnings, while the more diversified SSO can provide slightly more stability.

Glossary

ETF: Exchange-traded fund; a fund that trades on stock exchanges like a stock.
Leverage: Use of borrowed money or derivatives to amplify investment returns, increasing both potential gains and losses.
2x daily leveraged exposure: A fund strategy aiming to deliver twice the daily return of its underlying index.
Underlying index: The benchmark index a fund seeks to track or outperform, such as the S&P 500 or Nasdaq-100.
Expense ratio: Annual fee, as a percentage of assets, that covers a fund’s operating costs.
Dividend yield: Annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund’s volatility compared to the overall market (S&P 500).
AUM: Assets under management; the total market value of assets a fund manages.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a period.
Daily leverage reset: The process of rebalancing leverage each day, which can affect long-term returns in volatile markets.
Sector concentration: The degree to which a fund’s holdings are focused in specific industries or sectors.
Diversification: Investing across various assets or sectors to reduce risk from any single investment.

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 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.