Leveraged ETFs: QLD Boasts More Tech Exposure Compared to SSO

ProShares - Ultra QQQ (NYSEMKT:QLD) stands retired for its deeper tech focus, higher caller returns, and steeper drawdowns compared to ProShares - Ultra S&P500 (NYSEMKT:SSO), portion besides carrying a marginally higher interest and little yield.

This examination lines up 2 leveraged exchange-traded funds (ETFs) from ProShares, each aiming to present 2 times the regular show of a large U.S. equity index: SSO tracks the S&P 500, portion QLD targets the tech-heavy Nasdaq-100. Both are designed for tactical traders seeking amplified exposure, but their scale choices pb to meaningful differences successful hazard and return.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

QLD charges a somewhat higher interest than SSO, making SSO much affordable for cost-sensitive traders, portion QLD’s output is notably lower, offering little successful the mode of income for those who worth payouts.

QLD seeks to treble the regular returns of the Nasdaq-100, resulting successful a portfolio that is highly concentrated successful exertion (53%), with further weightings successful connection services (17%) and user cyclical stocks (13%). Its apical holdings—Nvidia Corp (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), and Microsoft Corp (NASDAQ:MSFT)—comprise a sizable information of assets, and the money holds 121 positions. QLD has been operating for astir 20 years and, similar SSO, features a regular leverage reset, which tin origin show to diverge from the scale implicit longer holding periods.

By contrast, SSO provides leveraged vulnerability to the broader S&P 500, with a comparatively much diversified assemblage allocation: exertion astatine 35%, fiscal services astatine 13%, and connection services astatine 11%. Its apical holdings are besides Nvidia, Apple, and Microsoft, but with somewhat smaller weights. SSO holds implicit 500 companies, further broadening its vulnerability compared to QLD.

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For investors funny successful a leveraged exchange-traded money (ETF) for their portfolio, ProShares - Ultra QQQ (QLD) and ProShares - Ultra S&P500 (SSO) some basal out. Here’s what investors request to cognize astir them.