ProShares Ultra QQQ

ProShares Ultra QQQ (QLD) aims to deliver twice the daily return of the Nasdaq-100 Index, before fees. It uses stocks plus derivatives such as swaps and futures to do this. It resets that leverage every day, so returns over months or years can stray far from 2x the index. Losses can be severe: it fell 83.2% from October 2007 to March 2009. It is less aggressive than its 3x sibling, TQQQ, and charges a 0.89% expense ratio.

• Over the year to Nov 2, 2026, QLD returned +7.6%.
• Its 5-year annualized return was -1.2% and its 10-year +23.1%.
• In the 2020 COVID crash it fell 51.7% and regained its old high 3.4 months after the low.
• Its worst full calendar year was 2008 (-72.9%); its best was 2009 (+121.2%).
• The deepest fall in its price history was 83.2% (Oct 31, 2007 to Mar 9, 2009), recovered by Mar 19, 2012.

As of Aug 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (13.4% of net assets), with its exposure coming from 13 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Aug 31, 2026, investors added a net $833.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -1.58%, -13.60%, +7.87%.

QLD uses leverage, which means its market exposure is larger than the money investors put in. It aims for twice the daily move of the Nasdaq-100 Index. Nasdaq Inc. builds the index from the 100 largest non-financial companies listed on Nasdaq, including some based outside the US, and weights them by market value. The index's members are reviewed each December, and weights are adjusted in March, June and September. As of August 31, 2026, the fund's largest direct stock holdings were NVIDIA (5.8% of net assets), Apple (5.1%), Microsoft (4.1%), Micron Technology (3.2%) and Amazon (3.0%).

To reach 2x, ProShare Advisors pairs those stocks with derivatives, which are contracts whose value is tied to the index. Most are total return swaps, which are deals with large banks to exchange the index's return. The fund also uses futures. Spare cash goes into Treasury bills, repurchase agreements and a ProShares money market ETF. If a swap partner fails to pay, the fund could lose money.

The key mechanic is the daily reset. After the index rises, the fund adds exposure, and after it falls, the fund cuts back. Over longer periods, compounding (returns building on returns) pulls results away from 2x, often for the worse in choppy markets. The prospectus shows that if the index fell 20% over a year with 50% volatility (day-to-day swings), the fund could lose about 50%, not 40%. A one-day index drop near 50% could wipe out the investment.

• QLD charges 0.89% a year.
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.07% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $91 in the first year and $1,172 over 10 years (assuming a 5% annual return).

Its 2x leverage resets every day, so long-term results can stray far from twice the index, and its past losses have gone beyond 80%.

QLD magnifies Nasdaq-100 gains, and it magnifies the losses just as much. It lost 83.2% from October 2007 to March 2009 and did not recover until March 2012. Its worst calendar year was 2008, at -72.9%. It fell 51.7% in the 2020 COVID crash and recovered in about 3.4 months. In the 2022 bear market it fell 61.2% and did not regain its peak until May 2024. Anyone who has to draw cash from it in a year like that would lock in heavy losses. It offers little income: the trailing yield was 0.14% as of October 29, 2026, paid quarterly. Costs are high. In the SEC's standard example, a $10,000 investment costs $91 over one year and $1,172 over 10 years. Past results don't predict future returns, and a retirement plan should look at the whole portfolio, not one fund.

Matched by leveraged/inverse funds on the same index (nasdaq-100), same direction.