Generated April 2026 from current fund data.
Overview
TQQQ and UPRO are both 3x daily leveraged equity ETFs from ProShares, but they track different core indexes. TQQQ targets the Nasdaq-100 (heavy tech exposure), while UPRO targets the S&P 500 (broad market). Both are designed for short-term tactical trading or hedging, not buy-and-hold investing—the daily reset mechanism means returns over longer periods diverge significantly from 3x annualized index returns.
How they differ
The biggest structural difference is their underlying index. TQQQ's Nasdaq-100 weighting skews heavily toward mega-cap technology and growth stocks (roughly 55% of the index), while UPRO's S&P 500 is more diversified across sectors and market caps. This explains TQQQ's higher beta (3.46 vs. UPRO's 3.08) and its steeper drawdown in the past 52 weeks (low of $20.12 vs. $52.32 for UPRO).
Distribution yield is slightly higher for UPRO at 0.75% versus TQQQ's 0.57%, though both are modest relative to their equity nature. UPRO has a smaller asset base ($3.97 billion vs. TQQQ's $24.6 billion), which can mean wider bid-ask spreads and less liquidity in large block trades.
Expense ratios are nearly identical (TQQQ 0.82%, UPRO 0.89%), but daily rebalancing costs—not fully reflected in the reported expense ratio—erode returns over time, especially in choppy markets. This "volatility decay" typically affects TQQQ more given its higher leverage factor and the tech sector's wider intraday swings.
Who each is best for
- TQQQ: Tactical traders with high risk tolerance seeking tech-heavy leverage for short-term directional bets; investors with a time horizon of days to weeks, not months or years. Not suitable for long-term retirement accounts.
- UPRO: Traders wanting broad-market leverage with slightly lower volatility drag than TQQQ; those who prefer diversified sector exposure over concentration in growth/tech. Similarly, best used for short-term tactical positioning, not buy-and-hold portfolios.
Key risks to know
- Volatility decay (daily rebalancing cost). Both funds reset their leverage daily. In sideways or choppy markets, this mechanism causes cumulative losses relative to what 3x leverage on buy-and-hold would deliver. TQQQ faces this more acutely because tech stocks have higher intraday variance.
- Leverage magnification in down markets. A 10% drop in the Nasdaq-100 translates to roughly a 30% loss in TQQQ; a 10% S&P 500 decline means roughly 30% in UPRO. The 52-week lows show this: TQQQ fell 67% while UPRO fell 57%, both from their highs.
- Concentration and sector risk in TQQQ. The Nasdaq-100's tech dominance means TQQQ's returns hinge on a narrower set of stocks. A rotation out of mega-cap tech can hit TQQQ disproportionately hard.
- Unsuitable for long-term holding. These are not core holdings. Extended holding periods (beyond weeks) almost always underperform because volatility decay compounds.
Bottom line
If you want tech-heavy leverage and can tolerate sharper drawdowns for a shot at outsized gains in strong tech rallies, TQQQ offers tighter AUM and liquidity. If you prefer diversified broad-market leverage with modestly less volatility drag, UPRO's S&P 500 exposure makes sense. Neither is a wealth-building vehicle—both are tactical tools best held for days or weeks. Past performance doesn't predict future results, and both carry the risk that leverage amplifies losses just as much as gains.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
