From 24/7 Wall St. · Ryne Mauck · · 50s
TQQQ's 3x Daily Target Became 5.93x Windfall
TQQQ's 3x daily target grew to 5.93x over ten years, defying decay claims.
In brief
TQQQ's 3x daily target grew to 5.93x over ten years, defying decay claims. TQQQ's 3x daily target became 5.93x over ten years, beating decay expectations. Originally reported by 24/7 Wall St..
TQQQ's 3x Daily Target
TQQQ targets 3x daily Nasdaq-100 returns but only for one day.
“The Fund does not seek to achieve three times (3x) the daily performance of the Index … for any period other than a day”
Decade-Long Performance
TQQQ returned 3197.28% over ten years, far exceeding its target.
“Over the past ten years, the proshares ultra pro qqq (nasdaq:tqqq) posted a price return of 3197.28%”
Daily Rebalancing Mechanism
TQQQ resets exposure daily to maintain 3x target, adding or cutting positions.
“Each day the fund rebalances, resetting exposure to its daily target”
Compound Returns Over Time
TQQQ's multiple of QQQ grew from 1.43x weekly to 5.93x over ten years.
“Tqqq relative to qqq over ten years: 5.93x”
Five-Year Performance
TQQQ returned 168.43% over five years, slightly behind QLD's 169.16%.
“Over five years, tqqq returned 168.43%, slightly behind qld's 169.16%”
Volatility Impact
Higher volatility reduced compounding in 2022, but longer gains boosted returns.
“Proshares puts the nasdaq-100's annualized volatility at 22.60% for the five years ended may 31, 2026”
The key point
TQQQ's 3x daily target became 5.93x over ten years, beating decay expectations.
