Best Leveraged ETFs in 2026

How We Chose These ETFs

Selecting the right ETFs for leveraged etfs investors requires a careful evaluation of multiple factors. We analyzed dozens of funds across the industry and narrowed our recommendations based on the following criteria. Each factor was weighted according to its importance for investors in this specific category, ensuring that our picks are truly optimized for your goals.

1. Amplified returns for — Amplified returns for short-term tactical trades
2. No margin account — No margin account required for leveraged exposure
3. Inverse options available — Inverse options available for hedging or bearish positions
4. Daily reset providing — Daily reset providing predictable single-day exposure

We also factored in our proprietary Beginner Suitability Score, which evaluates each fund on a 1-to-10 scale considering expense ratios, volatility (beta), diversification (holdings count), dividend history, and track record length. Funds that score consistently high across these dimensions earned a spot on our list.

1. ProShares UltraPro QQQ (TQQQ) — Best Overall

ProShares • Leveraged

TQQQ is a 3x leveraged ETF that aims to deliver three times the daily return of the Nasdaq 100 index. WARNING: This fund resets daily, meaning its long-term returns can differ dramatically from 3x the index due to compounding decay. It is designed for short-term trading only and can lose most of its value during prolonged downturns, making it unsuitable for buy-and-hold investors.

ProShares UltraPro QQQ earns its spot as our best overall pick because it delivers on the metrics that matter most for leveraged etfs investors. With an expense ratio of just 0.86%, you keep more of your returns working for you over time. The fund manages $25.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, TQQQ has delivered a total return of 40.00%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 101 individual securities, giving you solid diversification across a meaningful number of positions. Its beta of 3.00 indicates that the fund is somewhat more volatile than the market as a whole, offering higher upside potential but also larger drawdowns during corrections.

TQQQ currently pays a dividend yield of 0.50%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2010, TQQQ has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 8/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

Comparison Table

Here is a side-by-side comparison of all 1 ETFs in our leveraged etfs category. This table highlights the key metrics you should evaluate when choosing between these funds. Pay close attention to expense ratios and beginner scores, as these are the most impactful factors for long-term investment success.

*Beginner Score is calculated based on expense ratio, beta, holdings count, dividend yield, and fund inception year. Past performance does not guarantee future results.

Common Mistakes Leveraged ETFs Investors Make

Even with a solid selection of ETFs, investors in the leveraged etfs category can undermine their results by falling into avoidable traps. Understanding these common pitfalls will help you stay on track and avoid costly errors that could set back your financial progress by years or even decades.

• 1

  Holding leveraged ETFs long-term: Holding leveraged ETFs long-term without understanding volatility decay

• 2

  Using triple-leveraged funds as: Using triple-leveraged funds as core portfolio holdings

• 3

  Not understanding that leveraged: Not understanding that leveraged ETFs reset daily and can deviate significantly from expected returns over time

• 4

  Using inverse leveraged ETFs: Using inverse leveraged ETFs as permanent hedges when they lose value in sideways markets

The best defense against these mistakes is a simple, written investment plan that you commit to following regardless of market conditions. Define your target allocation, set up automatic contributions, and schedule a review only once or twice per year. This removes emotion from the process and keeps you focused on long-term wealth building rather than short-term noise.

Frequently Asked Questions