TQQQ investors are watching a painful 15% loss grow ProShares UltraPro QQQ has fallen more than 15% in 2026 while Nasdaq-100 is down less than 5%, and the gap between those two numbers explains exactly why leveraged ETFs terrify experienced investors. The Nasdaq-100 is having a rough 2026. Down about 4.3% since January, it has been an uncomfortable start to the year for anyone with heavy exposure to technology stocks. For investors holding ProShares UltraPro QQQ, the pain has been considerably worse. TQQQ, the fund designed to deliver three times the daily movement of the Nasdaq-100, has fallen more than 15% over the same period. That gap between 4.3% and 15% is not a glitch. It is exactly how the fund was built to behave, and right now it is behaving in the worst possible direction. Shares were trading near $39.67 this morning, down from a Thursday close of $41.23, following a 7.1% single-session drop the previous day. For comparison, QQQ, the standard Nasdaq-100 tracking fund, slipped roughly 1% in the same early trading window. More than 117 million shares of TQQQ changed hands on Thursday alone, reflecting the level of anxiety among traders watching the position move. The mechanics behind TQQQ’s losses go beyond simple multiplication. The fund resets its exposure at the close of every single trading session, which creates a compounding effect that works beautifully in a rising market and devastatingly in a declining or choppy one. The 2022 bear market demonstrated this in the starkest terms possible. When the Nasdaq-100 fell 35.6% between late 2021 and the end of 2022, QQQ holders saw that loss and little more. TQQQ holders lost 81.7% over the same stretch. A fund that drops 80% needs a 400% gain just to return to where it started. QQQ holders needed roughly a 55% recovery from the same bottom.#iran_conflict #nasdaq_100 #qqq #proshares_ultrapro_qqq #tqqq
There Is An Easy Way To Use Leverage To Boost QQQ The ProShares UltraPro QQQ (TQQQ) has declined 15.5% year-to-date, while its underlying Nasdaq-100 ETF, QQQ, has fallen only 4.3%, illustrating how 3x leverage magnifies market volatility. The fund’s structure, which uses daily rebalancing through swaps and futures, amplifies both gains and losses, making it particularly sensitive to choppy or declining markets. This dynamic was evident during the 2022 bear market, where a 35.6% drop in QQQ translated to an 81.7% loss in TQQQ. The Nasdaq-100 index, tracked by QQQ, is heavily concentrated in technology stocks, with the top seven holdings accounting for 17.4% of the portfolio. This concentration increases risk, as a sector-specific shock—such as regulatory changes or earnings disappointments from major tech firms—can disproportionately impact TQQQ. The current environment, marked by rising Treasury yields and a VIX near 27, exacerbates these risks. The 10-year Treasury yield, now at 4.39%, pressures growth stocks, which dominate TQQQ’s holdings, further compounding losses. Leveraged ETFs like TQQQ are designed to capture three times the daily performance of the underlying index, but this structure creates significant downside risk. Daily resets lock in losses during market oscillations, even if the index ends the week flat. For example, a market that declines, recovers slightly, and then falls again leads to repeated compounding losses for TQQQ holders. This mechanism has historically resulted in losses exceeding a simple 3x multiple, as seen in the 2022 episode. The VIX, a measure of market volatility, is currently near 27, placing it in an elevated range. A rising VIX, as observed over the past month, intensifies the impact of daily rebalancing.#nasdaq_100 #vix #qqq #proshares_ultrapro_qqq #tqqq
How Invesco’s New Equal-Weight Nasdaq-100 ETF Could Reframe the QQQ Story for IVZ Investors Invesco’s recent launch of the Equal-Weight Nasdaq-100 ETF (QEW) has sparked renewed interest in its investment strategy, positioning the fund as a potential alternative to the widely held Invesco Nasdaq-100 ETF (QQQ). The move underscores Invesco’s efforts to broaden its ETF lineup by offering a different weighting approach, which could appeal to investors seeking diversified exposure to the Nasdaq-100 index without the concentration of equal-weighted assets. However, the broader implications for Invesco’s stock (IVZ) depend on how effectively the firm balances product innovation with its financial performance and shareholder returns. The QEW launch coincides with Invesco’s increased equity buyback authorization to $2.5 billion, a move that signals management’s confidence in the company’s long-term value. For shareholders, this combination of product expansion and capital returns highlights Invesco’s focus on strengthening per-share metrics amid ongoing earnings volatility. The success of QEW and similar offerings could influence perceptions of the company’s profit recovery trajectory, particularly as the firm navigates challenges such as margin compression from the shift toward lower-fee products. Despite the strategic appeal of equal-weighted ETFs, investors should remain cautious about the potential for sustained margin pressure. The company’s financial outlook includes projections of $4.8 billion in revenue and $1.1 billion in earnings by 2028, which would require an 8.2% annual revenue decline and a significant increase in earnings from $422.9 million to $1.1 billion. These forecasts suggest a complex path to profitability, with the company aiming to justify its fair value estimate of $29.86, representing a 28% upside to its current price.#invesco #qqq #qew #ivz #nasdaq100
