-
TQQQ fees a barely decrease expense ratio, however it carries much more threat than SSO.
-
TQQQ has delivered a touch stronger one-year return, whereas additionally experiencing a considerably deeper five-year drawdown.
-
TQQQ leans closely into tech, whereas SSO is extra diversified throughout a number of sectors of the market.
-
These 10 shares might mint the subsequent wave of millionaires ›
The ProShares UltraPro QQQ ETF (NASDAQ:TQQQ) differs from the ProShares Extremely S&P 500 ETF (NYSEMKT:SSO) by providing increased leverage, higher tech publicity, and notably increased volatility.
Each funds pursue leveraged every day returns, with SSO aiming for 2x the S&P 500 and TQQQ concentrating on 3x the Nasdaq-100. This matchup spotlights two aggressive ETFs for short-term merchants or tactical buyers searching for amplified index publicity, however their threat profiles and sector tilts diverge sharply.
|
Metric
|
SSO
|
TQQQ
|
|
Issuer
|
ProShares
|
ProShares
|
|
Expense ratio
|
0.87%
|
0.82%
|
|
1-yr return (as of Dec. 16, 2025))
|
16.36%
|
16.60%
|
|
Dividend yield
|
0.69%
|
0.72%
|
|
Beta (5Y month-to-month)
|
2.02
|
3.69
|
|
AUM
|
$7.3 billion
|
$30.9 billion
|
Beta measures value volatility relative to the S&P 500. The 1-yr return represents complete return over the trailing 12 months.
TQQQ gives benefits for each fee-conscious and income-driven buyers, with a decrease expense ratio and better yield. Nonetheless, each of those elements primarily impression long-term buyers, and these specific leveraged ETFs are finest suited as short-term investments.
|
Metric
|
SSO
|
TQQQ
|
|
Max drawdown (5 y)
|
-46.73%
|
-81.65%
|
|
Progress of $1,000 over 5 years
|
$2,585
|
$2,459
|
TQQQ’s 3x leverage has pushed stronger one-year positive aspects, however its five-year max drawdown is sort of double SSO’s, highlighting a lot higher draw back threat. Over the previous 5 years, each ETFs roughly doubled an preliminary $1,000, however SSO did so with much less extreme declines.
TQQQ seeks to ship 3x the every day returns of the Nasdaq-100, making it extremely concentrated in expertise (55% of the fund’s complete belongings), with further weight in communication providers (17%) and shopper cyclicals (13%).
The fund holds 101 shares, with its largest stakes in Nvidia, Microsoft, and Apple. Its every day leverage reset and tech-heavy focus imply sharp swings and the potential for fast losses if tech underperforms.
SSO, in contrast, gives 2x every day publicity to the S&P 500, spreading threat throughout a broader universe of 503 holdings. Its prime holdings mirror these of TQQQ, however SSO’s sector combine is extra diversified with expertise making up 35% of the fund, financials at 13%, and shopper cyclical at 11%. Each funds use a every day leverage reset, which may erode returns if held long-term and volatility spikes.
For extra steering on ETF investing, take a look at the complete information at this hyperlink.
SSO and TQQQ are each high-risk, high-reward ETFs. They’re designed to earn above-average returns, however SOO has been the stronger performer.
TQQQ is the upper threat of the 2 funds, with its 3x every day leverage and heavy tilt towards the expertise business. This ETF has the potential to considerably outperform SSO, however lately, that threat hasn’t paid off. TQQQ’s one- and five-year complete returns are almost an identical to SSO’s, regardless of this ETF experiencing rather more extreme volatility — with a better beta and a max drawdown almost double that of SSO.
Now, this doesn’t suggest SSO will not be a dangerous funding. All leveraged ETFs will carry higher threat, particularly if held long-term. However SSO tracks the S&P 500 and solely goals for 2x the every day returns of the index, which leads to higher diversification and milder value fluctuations.
If you happen to’re contemplating investing in both of those ETFs, be ready for substantial ups and downs. However between the 2 funds, TQQQ has struggled with volatility over the previous few years with little payoff.
Expense ratio: The annual charge, as a share of belongings, {that a} fund fees to cowl working prices.
Leverage: Using borrowed cash or derivatives to amplify funding returns, rising each potential positive aspects and losses.
ETF (Alternate-Traded Fund): A fund traded on inventory exchanges that holds a basket of belongings, like shares or bonds.
Drawdown: The proportion decline from a fund’s peak worth to its lowest level over a selected interval.
Beta: A measure of an funding’s volatility in comparison with the general market, usually the S&P 500.
Dividend yield: Annual dividends paid by a fund or inventory, expressed as a share of its present value.
AUM (Property Underneath Administration): The whole market worth of belongings {that a} fund manages on behalf of buyers.
Sector: A bunch of corporations or belongings working in the identical section of the economic system, similar to expertise or financials.
Each day leverage reset: The method by which leveraged ETFs alter their publicity every day to keep up a set leverage ratio.
Nasdaq-100: An index of 100 of the biggest non-financial corporations listed on the Nasdaq inventory trade.
S&P 500: An index monitoring the five hundred largest publicly traded corporations in america.
Client cyclicals: Firms whose efficiency tends to observe financial cycles, like retailers, automakers, and journey companies.
Ever really feel such as you missed the boat in shopping for probably the most profitable shares? You then’ll need to hear this.
On uncommon events, our knowledgeable group of analysts points a “Double Down” inventory advice for corporations that they assume are about to pop. If you happen to’re apprehensive you’ve already missed your probability to speculate, now could be the very best time to purchase earlier than it’s too late. And the numbers communicate for themselves:
-
Nvidia: for those who invested $1,000 after we doubled down in 2009, you’d have $469,438!*
-
Apple: for those who invested $1,000 after we doubled down in 2008, you’d have $52,063!*
-
Netflix: for those who invested $1,000 after we doubled down in 2004, you’d have $509,039!*
Proper now, we’re issuing “Double Down” alerts for 3 unimaginable corporations, out there while you be a part of Inventory Advisor, and there is probably not one other probability like this anytime quickly.
See the three shares »
*Inventory Advisor returns as of December 15, 2025
Katie Brockman has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and quick January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
TQQQ and SSO Intention for Above-Common Returns, However There is a Clear Winner for Traders was initially revealed by The Motley Idiot
