ProShares UltraPro QQQ

TQQQ

Market cap $27.6B

On Tuesday, Oriental Harbor Investment Master Fund disclosed selling 59,274 shares of ProShares UltraPro QQQ (TQQQ -1.88%) in an estimated $5.4 million trade, according to a recent SEC filing.

ProShares UltraPro QQQ ETF offers significant long-term upside but comes with extreme volatility and risk due to its triple leverage. TQQQ can experience violent drawdowns in volatile markets but historically outperforms indices during recoveries, making pullbacks potential buying opportunities. I am watching for TQQQ to drop to around $90 before turning bullish, expecting big tech and strong earnings to drive future gains.

Direxion Daily Small Cap Bull ETF (NYSEARCA:TNA) is down 1.62% as this exchange traded fund (ETF) magnifies a 0.36% decline in its underlying small-cap index, the Russell 2000.

ProShares UltraPro QQQ (NASDAQ:TQQQ) is proof positive that you don't need sophisticated trading know-how to get leverage in the financial markets.

ProShares UltraPro QQQ is positioned to benefit from accelerating AI spending and major deals in the Data Center industry. TQQQ's portfolio is increasingly concentrated in Magnificent 7 tech stocks, especially Nvidia, Microsoft, and Apple, reflecting strong AI-driven growth. Recent multi-billion-dollar AI deals and explosive Data Center demand signal a favorable backdrop for a robust third-quarter tech earnings season.

ProShares UltraPro QQQ's 3x leverage can amplify losses significantly if bought near a market top; August conditions suggest caution. Upside momentum in Big Tech is fading, while a number of indicators point to a potential equity top. High rates of decline, daily rebalancing, and swap-contract value decay make math-based recovery from losses in TQQQ extremely difficult for late-cycle buyers.

TQQQ offers 3x daily exposure to the Nasdaq 100, featuring top tech leaders like Nvidia, Microsoft, and Apple with strong AI and innovation tailwinds. We are bullish on the ETF's core holdings, namely Nvidia's AI dominance, Microsoft's enterprise growth, and Apple's strategic US investments. Leveraged ETFs like TQQQ carry significant risk—losses compound faster than gains, and volatility can erode returns over time, especially for long-term holders.

Risk is in vogue with ETF investors again. Signs of speculative fervor are increasingly clear — but are investors willing to jump in?

The ProShares UltraPro QQQ offers leveraged exposure to U.S. large-cap tech, especially magnificent 7 stocks benefiting from the AI boom. The ETF has delivered exceptional returns, with a 384% NAV increase in the last 10-year period, far outpacing the S&P 500. TQQQ's concentration in volatile tech stocks and use of leverage create significant risk and potential for amplified losses.

The ProShares UltraPro QQQ ETF (TQQQ -2.23%) is one of the most popular ETFs among growth-focused investors, and it's easy to see why. A $10,000 investment in the ETF at its 2010 inception date would be worth more than $2 million today.