What is the main difference between an ETF that tracks an index and a leveraged ETF?

An ETF tracking an index, such as Fund A, generally mirrors the performance of its underlying stocks. Fund B, a leveraged ETF, aims for a multiple of that performance—in this case, 3x. Fund A's expense ratio is 0.18%, while Fund B's is 0.82%. Fund B's structure introduces complexity, including daily resets that affect long-term returns.

What does 'concentration' mean in these ETFs' holdings?

Concentration refers to a fund's investment in a limited number of stocks or sectors. Fund A has 8.52% in NVDA and 7.82% in AAPL. Fund B has similar top holdings but lower weights, such as NVDA at 3.11%. Fund A is in Large Growth, while Fund B is a leveraged equity ETF. Both funds share the same top-10 holdings, meaning they track similar segments of the market but with different structures and risk profiles.

How do net assets impact an ETF's stability and trading?

Fund A has $484.3 billion in net assets, indicating broad investor participation. Fund B has $36.9 billion. Larger net assets often mean better liquidity, which makes it easier to buy or sell shares at fair prices. Both funds are heavily traded, but Fund A's scale provides a cushion against significant price swings from large trades. Fund B's smaller size may result in less liquidity during extreme volatility, though it still has substantial trading interest.

How do the expense ratios of Fund A and Fund B compare over time?

Fund A's expense ratio is 0.18%, while Fund B's is 0.82%, a 0.64 percentage-point difference. Over time, lower fees help reduce ongoing costs. Fund A's expense ratio supports cost efficiency, while Fund B's higher cost reflects its leveraged structure. Both funds are subject to volatility, but the fee difference compounds, meaning the net impact on returns may differ significantly over extended periods.

What are the main risk factors for leveraged ETFs like Fund B?

Fund B's leverage amplifies both gains and losses, and its 0.82% expense ratio is higher than Fund A's 0.18%. Leveraged ETFs reset daily, which can cause returns to diverge from a 3x multiple over time. Fund B's top holdings have NVDA at 3.11%, similar to Fund A's 8.52%, but Fund B's structure introduces more volatility and decay risks, making it less suitable for long-term holding.

How do the top holdings of Fund A and Fund B compare?

Fund A's largest holding is NVDA at 8.52%, followed by AAPL at 7.82%. Fund B's largest holding is NVDA at 3.11%, followed by AAPL at 2.85%. Both funds have identical top 10 holdings. Fund A is an index-tracking fund, while Fund B uses swaps and futures for leverage. The holdings' concentration in tech equities makes both funds sensitive to sector performance.

Which fund aligns with long-term investing versus short-term trading?

Fund A, with a 0.18% expense ratio and established history since March 10, 1999, is designed for long-term growth. Fund B, with 3x leverage and a 0.82% expense ratio, was created for short-term trading (since February 9, 2010). Leveraged structures can lead to volatility decay, making them less appropriate for multi-year holding. Both have NVDA as top holdings.

Why do both ETFs have the same top 10 holdings?

Fund A and Fund B both track the NASDAQ 100 Index, focusing on technology and growth stocks. Their top 10 holdings—NVDA, AAPL, MSFT, MU, AMZN, AMD, GOOGL, META, GOOG, and TSLA—are identical, reflecting shared exposure. Fund A's 0.18% expense ratio and Fund B's 0.82% leverage fee highlight the cost of amplifying returns in Fund B.

How do these funds react to a volatile equity market?

Fund A's exposure to large growth stocks makes it sensitive to market swings. Fund B, a 3x leveraged ETF, has amplified volatility, causing larger short-term moves. Both have similar top holdings like NVDA at 8.52% and 3.11%. Fund A's long history since 1999 provides a different experience than Fund B's 2010 inception. Leveraged funds can experience decay due to daily resetting.

What does 'Large Growth' category mean in this context?

Fund A is in Large Growth, holding companies like NVDA at 8.52% and AAPL at 7.82%. These are large-cap stocks with high expected earnings growth, often in tech. Fund B uses derivatives to provide 3x leverage. Fund A's expense ratio is 0.18%, and Fund B's is 0.82%. Both funds track similar equities, but Fund B's leveraged structure introduces different risk characteristics.

Can a beginner hold both Fund A and Fund B for diversification?

Holding both funds for diversification is possible, but it may not align with Fund B's short-term nature. Fund A, with $484.3 billion net assets, offers lower volatility compared to Fund B, which has $36.9 billion in assets and a 0.82% expense ratio. Fund B's 3x leverage causes higher volatility. Both funds share the same top holdings, but holding both may lead to concentrated risk in tech.

How should one interpret the dividend yields of 0.41% and 0.47%?

Fund A yields 0.41%, and Fund B yields 0.47%. Both funds are focused on capital growth rather than income. Their yields are modest compared to dividend-focused ETFs. Investors should understand that distributions for ETFs come from dividends paid by the underlying companies in the funds' holdings, but these funds offer limited income generation and their structures are more focused on the equity market movements.

QQQ vs TQQQ

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares the Invesco QQQ Trust Series 1 and the ProShares UltraPro QQQ. We outline differences in fees, holdings, dividends, and how each fund tracks its market. The QQQ focuses on large growth stocks, while the TQQQ offers 3x leverage, reflected in its 0.18% and 0.82% expense ratios respectively. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

QQQ

Metric

TQQQ

0.18%

Expense Ratio

0.82%

0.41%

Dividend Yield

0.47%

$484.28B

Net Assets

$36.89B

104

Holdings

127

Mar 10, 1999

Inception Date

Feb 9, 2010

–

Index Tracked

–

Large Growth

Fund Category

Trading--Leveraged Equity

QQQ costs about $64.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	QQQ	TQQQ
NVDANVIDIA Corporation	8.52%	3.11%
AAPLApple Inc.	7.82%	2.85%
MSFTMicrosoft Corporation	5.81%	2.13%
MUMicron Technology, Inc.	5.01%	1.84%
AMZNAmazon.com, Inc.	4.32%	1.59%
AMDAdvanced Micro Devices, Inc.	3.99%	1.47%
GOOGLAlphabet Inc.	3.22%	1.19%
METAMeta Platforms, Inc.	3.12%	1.15%
GOOGAlphabet Inc.	2.97%	1.11%
TSLATesla, Inc.	2.88%	1.11%

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Investment Analysis

QQQ

Pros

Very large net assets of $484.3 billion support liquidity.
Low 0.18% expense ratio helps reduce ongoing costs.
Long track record since inception on March 10, 1999.

Considerations

Concentrated top holdings include NVDA at 8.52% weight.
Low 0.41% dividend yield offers limited income generation.
Large Growth category means significant equity market beta exposure.

TQQQ

Pros

Large $36.9 billion net assets indicate substantial trading interest.
Higher 0.47% dividend yield provides slightly more income than Fund A.
Long inception since February 9, 2010 shows established operation.

Considerations

High 0.82% expense ratio increases ongoing investment costs.
Leveraged equity structure introduces significant volatility and decay risks.
Top holdings remain concentrated, with NVDA as largest position at 3.11%.

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About QQQ and TQQQ

QQQ (QQQ)

Invesco QQQ Trust Series 1 (QQQ) is a widely traded exchange‑traded fund that seeks to track the Nasdaq‑100 Index, offering concentrated exposure to large non‑financial companies listed on the Nasdaq — think technology, consumer and biotech leaders. It provides a convenient way to gain growth-oriented exposure to a basket of big-cap, often high-growth names, with intraday liquidity like a stock. Investors should know QQQ is relatively concentrated in a handful of large issuers and sectors, which can amplify both upside and downside versus broader-market funds. It pays modest dividends and typically has higher volatility than diversified market-cap indices. As with any ETF, past performance does not predict future returns; values can fall as well as rise. This content is educational and not personalised advice — consider your risk tolerance, investment horizon and diversification needs before investing, and consult a regulated adviser for tailored guidance.

TQQQ (TQQQ)

The ProShares UltraPro QQQ (TQQQ) is a leveraged exchange-traded fund designed to provide three times the daily performance of the Nasdaq-100 index. As a trading instrument, it is intended primarily for short-term use, appealing to investors who are actively managing their portfolios and seeking enhanced exposure to technology-heavy equity markets. With net assets of approximately USD 36.89 billion, it is a widely traded product with a daily expense ratio of 0.82%. Investors should be aware that while leverage can amplify gains, it also magnifies losses, and the fund's performance may not match a threefold return over longer periods due to compounding effects. Dividend yields are minimal, and the fund holds 127 positions. This instrument carries high volatility and is not suitable for all investors; careful consideration of risk tolerance is essential before engaging.

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QQQ vs TQQQ

Fund Snapshot