TQQQ Stock Recent News

When I last covered ProShares UltraPro QQQ Fund, I rated it a hold because its leverage combined with the underlying index's steep valuation made it risky. I did not rate it a sell because while NASDAQ-100 stocks were pricey at the time, they were not yet into outrageous overvaluation territory. Today, 'outrageous overvaluation' is arguably present within the large QQQ components.

We have highlighted 10 ETFs that have seen higher average volumes over the past three months.

Leveraged ETFs like TQQQ perform poorly during oscillating markets, and I expect significant fluctuations this year, given a skittish investment climate. In 2024, TQQQ holders pretty much got off scot free while other leveraged ETFs like SOXL suffered value impairment. Upside risk exists if indices trend steadily higher, but I recommend high-delta put options to minimize potential losses.

The ProShares UltraPro QQQ ETF (QQQ) stock has done well this year. It has risen by 42% this year and by 100.2% in the last 12 months.

TQQQ is a 3x leveraged ETF that tracks the Nasdaq-100. When timed right, it gives investors the opportunity to generate excellent returns over a very short time period. Despite the potentially high risk, I therefore rate TQQQ a buy if investors manage risk accordingly. In this piece, I will break down how I am approaching this challenge and what potential and existing investors might need to look out for.

The ProShares UltraPro QQQ (TQQQ) and ProShares UltraPro Short QQQ (SQQQ) ETFs moved in different directions on the first trading day of September.  SQQQ surged by over 9.15% while the TQQQ fund crashed by a similar amount.

ProShares UltraPro QQQ may have peaked in July. Any acceleration in technology sector selling during the autumn will push this 3x leveraged security into oversized percentage losses. The summer's huge bearish shift in trading momentum is worrisome, with a clear vacuum of buyers in the Big Tech names appearing during late July and early August. Ease-of-Movement indicator swings deep into red territory are screaming investors sell technology-related ETFs on the rebound.

Investors who bet big on tech stocks rebounding from a tough July are seeing their money evaporate in the current meltdown.

Leveraged ETFs are risky due to beta slippage and potential value erosion over time. However, SEC warnings about holding leveraged securities for longer than one day appear to have softened in recent years. Any trend is the friend of the leveraged ETF/ETN investor, while oscillation is the enemy.

Analyzing hidden costs of investing in leveraged ETFs through mathematical basis. Comparison of theoretical frictionless leveraged ETF returns with actual returns to identify embedded costs. Observations on decay in leveraged ETFs, impact of rebalancing, and potential arbitrage opportunities.