ProShares UltraPro QQQ

TQQQ is the ProShares UltraPro QQQ — a leveraged ETF designed to deliver 3× the daily return of the Nasdaq-100 Index. The 3× exposure resets every trading day at market close. TER is 0.86%, materially higher than unleveraged QQQ (0.20%) or QQQM (0.15%) because of derivative-rebalancing costs. ProShares explicitly states TQQQ is "designed to seek daily investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the Nasdaq-100 Index" and is "not intended to be held for periods longer than a day".

Daily compounding. Because the leverage resets each day, multi-day returns compound differently than a simple 3× expectation. In volatile or sideways markets, this produces drag — even a flat Nasdaq-100 over multiple days can produce losses in TQQQ. The mechanism is structural, not a fund-management failure. Worked examples and the full mechanics are at our leveraged ETF risk explainer.

Yes. TQQQ is available via Hatch, Stake, Sharesies (US market), and Interactive Brokers. Above NZ$50,000 cost basis FIF rules apply (FDR method most common). The combination of leverage decay + FDR floor (5% × MV regardless of fund performance) typically produces poor after-tax outcomes for NZ buy-and-hold investors. See our risk explainer for the full FIF interaction.

Sophisticated traders running daily-cycle directional bets on the Nasdaq-100. ProShares explicitly markets TQQQ for short-term tactical positions, not buy-and-hold. ASIC and the US SEC have both issued investor alerts on this product class. ETFs.co.nz publishes TQQQ reference data factually but does not recommend it as a buy-and-hold instrument for any investor profile.