Leveraged ETF behavior
TQQQ vs QQQ: leveraged ETF behavior
Compare a Nasdaq-100 fund with 3x daily leverage against the unleveraged fund, with an emphasis on how daily reset compounds.
Modeled result
From 2011 to 2025, TQQQ finished ahead of QQQ before tax and retained about $964,492 more in estimated end-date sale proceeds after taxes paid during the test, from the same $10,000 start.
Historical model
Growth of $10,000
2011-01-03 to 2025-12-31
Chart window
All history
Chart window
TQQQ
3x Nasdaq-100 (TQQQ)
- After-tax if sold at end
- $1,068,889
- Before tax
- $1,372,477
- Value after taxes paid
- $1,360,753
- Max drawdown
- -81.66%
QQQ
Nasdaq-100 (QQQ)
- After-tax if sold at end
- $104,397
- Before tax
- $126,698
- Value after taxes paid
- $122,933
- Max drawdown
- -35.12%
Detailed metrics
Assumptions
$10,000 lump sum; distributions reinvested; monthly rebalancing; 2011-01-03 to 2025-12-31.
Tax profile: Single filer, $150,000 income, taxable account, HIFO lots, 2026 federal brackets, no state tax.
FAQ
Does 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. These products carry magnified drawdowns and path dependence, and this page models the behavior instead of advising any position.