ETF Research and Analysis

by Robert Goldsborough
ProShares Ultra QQQ QLD is designed to deliver investors twice the daily return of the Nasdaq 100 Index, which is the same index tracked by the popular PowerShares QQQ QQQ, also known as the Cubes. As a result, this fund's   Read more 

Bull Case

This ETF's high-octane strategy may appeal to investors who are bullish on large-cap growth stocks, or in particular, the tech sector.
The index on which this ETF is based is filled with high-quality companies with economic moats. Because such firms have durable structural competitive advantages, they should weather the storm more easily than less-entrenched rivals.
If the Nasdaq 100 Index rallies, this fund should significantly outperform, thanks to its double-long exposure. Read more 

Bear Case

This ETF's 0.95% expense ratio is significantly higher than unleveraged, broad-based, 100% long, technology-sector ETFs.
The fund's use of leverage has spurred breakneck volatility and huge losses at times. Investing in this fund requires a strong stomach and nerves of steel.
The fund aims to deliver twice the target index's daily return, but that doesn't hold over longer periods because of the compounding arithmetic. In other words, if you plan to hold past sundown, you won't get exactly twice the index's return. Read more 

Why Index Construction Matters for ETF Investors 
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