Leveraged ETF behavior
Compare a 3x daily leveraged Nasdaq-100 fund against the unleveraged fund, with an emphasis on how daily reset compounds.
TQQQ seeks three times the daily return of the Nasdaq-100, and QQQ tracks the index directly. Because TQQQ resets its leverage every day, its multi-day return is path dependent and does not equal three times the index return over a longer horizon.
In volatile or sideways markets, this daily reset produces volatility drag that erodes the leveraged result. This page is a caution page: run the backtest to see the behavior, and use the dedicated leveraged ETF tools for tracking-error detail.
Historical results
Historical results for a $10,000 lump sum with dividends reinvested and monthly rebalancing, as of 2025-12-31. Past performance does not guarantee future results. Not investment advice.
After-tax assumptions: Single filer, $150,000 income, taxable account, HIFO lots, 2026 federal brackets, no state tax.
Run it live with your own dates and tax profileDoes TQQQ return three times QQQ over the long run?
No. TQQQ targets three times the daily return and resets each day, so over multiple days its return is path dependent. In volatile markets, compounding and volatility drag can pull the long-run result well away from three times the index.
Is this comparison a recommendation to hold a leveraged ETF?
No. It shows how daily reset leverage behaves so the mechanics are visible. Leveraged products carry magnified drawdowns and path dependence, and this page models the behavior rather than advising any position.
Run this comparison with your own dates, account type, and tax profile.
Open the prefilled backtest