What is TQQQ?

TQQQ is the ticker symbol for the ProShares UltraPro QQQ, which is a leveraged exchange-traded fund (ETF).

TQQQ uses leverage to track the Nasdaq 100 (QQQ) and create results that are three times the daily results of the QQQ. So, if QQQ rises 1% in one day, TQQQ rises 3%. Conversely, if QQQ declines 1% in one day, TQQQ will decline by 3%

Leverage Mechanisms: TQQQ uses Futures contracts, Swaps, Options, and other derivatives to create the 3x magnification of the QQQ. It also holds money market funds, cash and short-term U.S. Treasury securities. The derivatives track the performance of QQQ. TQQQ does not hold the actual stocks.

Composition of QQQ: QQQ is comprised of 100 of the largest non-financial companies listed on the Nasdaq Stock Exchange. It has roughly $30 Billion in net assets.

Here are TQQQ Largest Holdings:

Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN), Tesla (TSLA), META Platforms (META), Alphabet Inc Class A (GOOGL), Alphabet Inc Class C (GOOG), Broadcom (AVGO), and Palantir Technologies (PAL). The top 10 holdings =50% of the fund.

TQQQ is a high volatility, high reward/high risk Exchange Traded Fund (ETF) that is designed for aggressive traders/investors who can handle risk and volatility. It has option trading on either a weekly or monthly basis.

TQQQ is not well suited for retirees on fixed incomes unless they have assets they can afford to put at risk. Compounding and volatility decay can reduce the effectiveness of holding TQQQ long term. It was designed for day and swing trading only.

Since its inception in February 2010, TQQQ has a total return of 35,471.74%. Yes, that's not a misprint. TQQQ has split several times. While a couple of years it had negative returns. most of the annual total returns have been quite positive. TQQQ also pays a small dividend, but it should not be regarded as a dividend ETF per se.

So whether you like to scalp, day trade, swing trade, or hold long term, there's something for everyone in the Mastering TQQQ Trading series of courses and mini-courses.