ProShares Ultra QQQ (QLD) has outperformed Nasdaq-100, offering high returns but comes with risks.

From Yahoo Finance: 2025-06-28 08:30:00

ProShares Ultra QQQ (QLD) is an ETF that aims to double the performance of the Nasdaq-100 index. Over the past five years, QLD has outperformed the index by a significant margin, surging 191% compared to the Nasdaq-100’s 114% rally. It is a good growth play for tech sector investors seeking higher returns and short-term traders.

However, QLD’s aggressive strategies come with risks. It relies heavily on swap contracts, making it vulnerable to counterparty risk in the event of a financial crisis. It also magnifies losses, charges high fees with a gross expense ratio of 0.97%, and exposes investors to double the downside potential of the Nasdaq-100.

The ETF could be attractive for short-term traders looking to amplify gains from temporary market events. But for long-term investors seeking a diversified, low-cost ETF, QLD may not be suitable due to its risky nature and high fees. Consider alternatives like the Invesco QQQ Trust or S&P 500 ETFs for a more stable investment strategy.



Read more at Yahoo Finance: 3 Reasons to Buy QLD and 3 Reasons Not To