Like the Invesco QQQ ETF (QQQ), the ProShares UltraPro QQQ (TQQQ) tracks the tech-focused NASDAQ-100 index, but in the case of TQQQ it is seeking daily investment results that are three times the daily performance of the NASDAQ-100. It does this by trading on leverage and actively entering and exiting trades throughout the day.

Common uses for a leverage ETF like TQQQ include: Seeking magnified gains (will also magnify losses), getting a target level of exposure for less cash and overweighting a market segment without additional cash.

TQQQ’s expense ratio is 0.98% and it currently has about $3.7 billion in assets under management.

Rationale

Naturally, the most direct way to gain exposure to the TQQQ approach to the market is to buy its listed shares. But there are a number of good reasons for investors to reconsider that approach. For one thing, the tech-focused NASDAQ is famously volatile, so a leveraged ETF like TQQQ is effectively taking a risky and volatile index and making it 3x more so. Rather than buying TQQQ shares themselves, investors interested in a technology ETF that’s either more conservative or more aggressive might consider buying funds that provide exposure to its top-weighted sectors, in order to manage their investments more directly than via TQQQ.

Investing in TQQQ

A search on Magnifi suggests that investors can gain access to the NASDAQ-100 via a number of different funds and other ETFs, including those shown below.

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.

This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]