Title: TQQQ: Smart Money or Just Gambling? A Data Analyst's Take
Alright, let's dive into this ProShares UltraPro QQQ (TQQQ) business. Long Run Wealth Advisors LLC, a name I'm only vaguely familiar with (and that's saying something), just took a $530,000 position in it. That's according to their recent SEC filing. Six thousand three hundred and ninety-one shares, to be exact. The question isn't just "why," but is this a calculated move or just another roll of the dice in a casino disguised as the stock market?
Leveraged ETFs: A Double-Edged Sword
TQQQ isn't your standard ETF. It's a leveraged ETF, aiming for triple the daily performance of the Nasdaq-100. If the Nasdaq jumps 1%, TQQQ should, in theory, jump 3%. Sounds great, right? Like strapping a rocket booster to your portfolio. But here’s the catch, and it’s a big one: leverage works both ways. A 1% drop in the Nasdaq means a roughly 3% nosedive for TQQQ. It’s like driving a race car – exhilarating until you hit a wall.
And let’s be clear, the Nasdaq-100 isn't exactly known for its stability. It’s packed with tech stocks, growth stocks – the kinds of companies that can soar one day and crash the next. TQQQ amplifies that volatility. The fund's top holdings are mainly derivative securities offered by various financial institutions, which provide the leverage to magnify the Nasdaq-100's returns. In addition, the fund owns shares of the companies in the index. Its top 10 holdings as of October 2025 include Nvidia, Microsoft, and Apple.
The other institutional investors hopping on the TQQQ train are worth a quick glance. Howard Capital Management Inc. massively boosted its position, now holding a staggering $404 million worth. Kingstone Capital Partners Texas LLC jumped in with around $396 million. These aren't small players. So, are they seeing something the rest of us are missing, or are they just playing a high-stakes game of chicken?
Here's a point that often gets glossed over: TQQQ is designed for short-term trading, not long-term investing. Chasing triple the daily returns doesn't translate to triple the long-term gains. The math gets complicated, but the key takeaway is that the daily resets inherent in leveraged ETFs erode long-term performance. While the Nasdaq-100 has generated a 21% annualized return over the past five years, the ProShares UltraPro QQQ has produced a total return of 35% annualized.
A Closer Look at the Numbers
Consider the expense ratio: 0.82%. That's $8.20 per $1,000 invested, annually. It's on the higher end for an index fund. Replicating triple the performance of an index requires quite a bit of behind-the-scenes work.
And what about dividends? TQQQ does pay a dividend, currently yielding around 0.66%. But don't expect a steady income stream. It's a pass-through from the Nasdaq-100 companies, so it's going to be inconsistent. Not a selling point for income investors.
Shares of ProShares UltraPro QQQ are going to split before the market opens on Thursday, November 20th. The 2-1 split was recently announced. The newly issued shares will be issued to shareholders after the closing bell on Wednesday, November 19th.
Here's where I start to get skeptical. Looking at TQQQ's historical performance, the numbers are impressive, but they don't tell the whole story. Since its inception (February 9, 2010), TQQQ has delivered a 42.70% annualized return, while the Nasdaq-100 has returned 19.63%. That's a substantial difference, but it's not triple.
I've looked at hundreds of these filings, and this particular pattern screams "buyer beware."
Risk vs. Reward: Know Thyself
So, should you invest in TQQQ? That depends entirely on your risk tolerance and investment horizon. If you're a day trader with nerves of steel and a knack for timing the market, it might be a tool in your arsenal. But if you're a long-term investor looking for stable growth, steer clear. This isn't the ETF for you. How to Buy ProShares UltraPro QQQ (TQQQ)
The bottom line is that TQQQ is a high-risk, high-reward bet on the continued success of the Nasdaq-100. It's not a "get rich quick" scheme, and it's certainly not a substitute for a well-diversified portfolio. Long Run Wealth Advisors LLC may have their reasons for investing in it, but before you follow suit, make sure you understand the risks involved. Long Run Wealth Advisors LLC Invests $530,000 in ProShares UltraPro QQQ $TQQQ
