What Is TQQQ?
TQQQ is a triple-leveraged ETF that seeks to deliver 3x the daily performance of the Nasdaq 100. That means if the Nasdaq 100 rises 1% in a day, TQQQ is designed to rise about 3%. The flip side: if the index falls 1%, TQQQ can fall 3%. It’s a high-risk, high-reward product built for short-term traders, but long-term performance tells an interesting story.
The Numbers Speak for Themselves
Over the last decade, the Nasdaq 100 has been on an extraordinary run, fueled by the dominance of tech giants like Apple, Microsoft, Nvidia, Amazon, and Alphabet.
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TQQQ CAGR (10 years): ~38%
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QQQ CAGR (10 years): ~16%
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TQQQ DCA Return (10 years): ~600%
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QQQ DCA Return (10 years): ~200%
Put differently, if you had invested $1,000 every month into TQQQ over the past 10 years, you’d be sitting on more than $850,000 today. The same strategy with QQQ would have grown to about $360,000. That’s a half-million dollar difference — enough for a house, or even a few condos in Florida.
Why Has TQQQ Worked?
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Tech Dominance: The U.S. tech sector has powered the Nasdaq to record highs, and TQQQ magnified those gains.
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Long Bull Runs: Leveraged ETFs are designed for daily compounding, but when markets trend up consistently, the compounding works in investors’ favor.
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Resilient Index: The Nasdaq 100 isn’t just any index — it’s concentrated in the most innovative, fastest-growing companies on the planet.
The Risks You Can’t Ignore
While TQQQ’s performance is jaw-dropping, the risks are real:
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Volatility Drag: In sideways or choppy markets, compounding can work against you.
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Big Drawdowns: In 2022, TQQQ lost more than 75% of its value at one point.
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Not for Everyone: TQQQ is designed as a trading instrument. Long-term holders have benefited in a decade-long bull market, but that doesn’t mean the future will look the same.
Final Thoughts
TQQQ’s rise to $100 highlights both the power and peril of leveraged ETFs. For those who believed in America’s tech-driven growth story, the past decade has been life-changing. But investors must remember: leverage is a double-edged sword.
👉 If you want to explore more, check out our ETF Compare tool and our blog posts with sample trades and strategies.
⚠️ Disclaimer: This article is for informational purposes only and not financial advice. Do your own research and consult a licensed financial advisor before making any investment decisions.