The Direxion Daily S&P 500 Bull 3X Shares ETF (SPXL 4.60%) and the ProShares - Ultra QQQ ETF (QLD 3.42%) both offer amplified exposure to major U.S. stock indexes, but they differ meaningfully in sector focus, and holdings concentration.
Both funds are designed for aggressive traders seeking daily leveraged returns, but SPXL targets triple the daily S&P 500 performance, while QLD aims for double the daily move in the Nasdaq-100. This matchup pits broad blue chip exposure against a more tech-centric growth tilt, with both carrying outsized volatility and unique risks.
Snapshot (cost & size)
| Metric | SPXL | QLD |
|---|---|---|
| Issuer | Direxion | ProShares |
| Expense ratio | 0.87% | 0.95% |
| 1-yr return (as of Dec. 17, 2025) | 12.12% | 12.27% |
| Dividend yield | 0.75% | 0.18% |
| Beta (5Y monthly) | 3.07 | 2.42 |
| AUM | $6.2 billion | $10.6 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
SPXL and QLD both carry expense ratios just under 1%, making them relatively costly compared to traditional index funds. SPXL offers a higher dividend yield, though both yields are modest. For short-term investments like these, fees and yield are likely not significant factors to consider.
Performance & risk comparison
| Metric | SPXL | QLD |
|---|---|---|
| Max drawdown (5 y) | -63.80% | -63.68% |
| Growth of $1,000 over 5 years | $3,025 | $2,417 |
What's inside
QLD leans heavily on technology, with 55% of assets allocated to that sector, followed by communication services and consumer cyclicals. The fund holds just 101 stocks, with positions in Nvidia, Apple, and Microsoft making up a significant portion of assets. Like most leveraged funds, QLD resets its leverage daily -- meaning compounding can cause returns to diverge from exactly double the Nasdaq-100 over longer periods.
In contrast, SPXL spreads its exposure across more than 500 stocks, offering more diversification by sector and stock count. Its largest holdings match QLD's, but each makes up a much smaller share of the portfolio. SPXL also uses a daily leverage reset, which can magnify both gains and losses relative to the S&P 500.
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What this means for investors
Leveraged ETFs can be lucrative, but they can also be incredibly volatile. Both QLD and SPXL have experienced their fair share of turbulence, with severe max drawdowns over the past year and higher betas suggesting significant price volatility.
The two funds have had similar performance, though SPXL has earned marginally higher returns over the last five years. The primary difference between them, then, comes down to diversification.
SPXL tracks the S&P 500, aiming to triple the index's daily returns. QLD is far more tech-focused, tracking the Nasdaq-100, but it only aims to double the index's daily performance.
This creates an interesting balance of risk and reward. The S&P 500 is more diversified than the Nasdaq-100, which can help mitigate some volatility but also limits potential earnings. However, SPXL's higher leverage factor compared to QLD can result in more lucrative returns, but with steeper drawdowns along the way. This results in two funds that have similar levels of risk and reward, but for different reasons.
When deciding where to buy, investors should consider what types of stocks they're seeking exposure to. Those looking for a more targeted approach to tech stocks may opt for QLD, while investors seeking magnified exposure to the S&P 500 might prefer SPXL.
Glossary
Leveraged fund: An investment fund using financial derivatives to amplify daily returns, increasing both potential gains and losses.
Daily leverage reset: The process of adjusting a fund's leverage each day to maintain its target multiple of index performance.
Expense ratio: The annual fee, as a percentage of assets, that investors pay to cover a fund's operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current share price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Holdings concentration: The degree to which a fund's assets are invested in a small number of securities or sectors.
Nasdaq-100: An index of the 100 largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: An index tracking the performance of 500 large U.S. companies across various industries.
Compounding: The process where investment returns generate additional earnings over time, which can affect leveraged fund performance.
