TQQQ +3x ProShares UltraPro QQQ
TQQQ
ETF +3x BULL extremeProShares UltraPro QQQ
Realized return vs theoretical +3x Nasdaq-100
Pair counterpart found:
SQQQ
(-3x bear, ProShares UltraPro Short QQQ)
Shorting both legs of a daily-reset bull/bear pair captures combined decay drift over time. Theoretical "free money" — actual edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow products.
Other leveraged products tracking Nasdaq-100
| Symbol | Factor | Direction | Issuer | Name | Implied AUM | 30d Vol | Options |
|---|---|---|---|---|---|---|---|
| QQUP | +2x | BULL | ProShares | ProShares Trust ProShares Ultra QQQ Mega | $26.8M | 12,047 | |
| QQXL | +2x | BULL | ProShares | ProShares Ultra QQQ Top 30 | $5.2M | 3,198 | |
| QLD | +2x | BULL | ProShares | ProShares Ultra QQQ | — | 4,968,673 | |
| QQDN | -2x | BEAR | ProShares | ProShares Trust ProShares UltraShort QQQ Mega | $1.2M | 3,368 | |
| QID | -2x | BEAR | ProShares | ProShares UltraShort QQQ | — | 21,343,075 | |
| SQQQ | -3x | BEAR | ProShares | ProShares UltraPro Short QQQ | — | 71,488,576 |
How TQQQ works
TQQQ targets +3x the daily return of Nasdaq-100 — not the cumulative return over multi-day windows. The fund rebalances at the close each day using swaps or futures, which is what creates the volatility drag the chart above visualizes.
Mathematical headline: drag ≈ −0.5 × N × (N−1) × σ² per period. For a +3x product on an underlying with 25% annualized vol, expected annual drag is around 18.8%. Add expense ratio and the realized number is typically worse.
- Short-term tactical: daily and intraday holds are where these products were designed to live.
- Premium selling: options on TQQQ carry very rich IV — see the quote page for IV rank and straddle pricing.
- Multi-day directional: works in strong trends; gets eaten alive in chop. Use the chart above to gauge the realized vs theoretical track record.