TQQQ targets triple daily returns of the Nasdaq-100 and is heavily tech-weighted, while SSO provides 2x daily exposure to the S&P 500 with a broader sector mix, and both employ daily leverage resets that can distort long-term performance.

Leverage magnifies both gains and losses, daily rebalancing and time decay erode long-term performance, and these funds are not appropriate for routine buy-and-hold investors seeking steady growth.

Higher expense ratios—about 0.82% for TQQQ and 0.87% for SSO—add to the cost of holding these funds and reduce net returns over time.

Over five years, TQQQ has seen a max drawdown around 81.8% and SSO about 46.8%, with growth from a $1,000 investment reaching roughly $2,760 for TQQQ and $2,735 for SSO, highlighting substantial volatility and risk of sizable losses.

Leveraged ETFs like TQQQ and SSO offer amplified daily returns but carry significant risks and are generally not suitable for long-term buy-and-hold investors.

The daily reset feature means long-term returns can diverge sharply from the implied leverage, often yielding far lower CAGR than the nominal leverage would suggest (e.g., TQQQ’s five-year CAGR around 16.1% vs. an expected 48% if it scaled perfectly long-term).