Best Leveraged ETFs to Watch or Invest In Right Now

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Leveraged ETFs are built for investors who want to amplify short-term market movements, often by two or three times the daily return of an underlying index. Experienced traders commonly use these funds to express tactical views on market direction, hedge portfolios or react quickly to news-driven volatility.

However, leveraged ETFs are not traditional long-term investments. Their daily reset structure can lead to performance outcomes that differ significantly from expectations over longer holding periods.

The funds below are among the most widely used leveraged ETFs, selected for liquidity, transparency and clearly defined exposure for our readers.

At a Glance: Best Leveraged ETFs

ETF	Ticker	Leverage	Exposure Type	Risk Profile	Why It Stands Out
ProShares UltraPro QQQ	TQQQ	3x	Nasdaq-100	Very high	Popular for short-term tech momentum
ProShares Ultra S&P 500	SSO	2x	S&P 500	High	Broad market leverage
ProShares UltraPro S&P 500	UPRO	3x	S&P 500	Very high	Aggressive index exposure
Direxion Daily S&P 500 Bull 3X	SPXL	3x	S&P 500	Very high	High liquidity and trading volume
Direxion Daily Semiconductor Bull 3X	SOXL	3x	Semiconductors	Extremely high	Sector-specific leverage

Leverage applies to daily returns only. Results over longer periods may vary significantly.

What Is a Leveraged ETF?

A leveraged ETF is designed to deliver a multiple of the daily performance of an underlying index using derivatives, swaps and futures contracts. According to the U.S. Securities and Exchange Commission, these funds reset daily, meaning their performance over longer periods can diverge substantially from the stated multiple.

This structure makes leveraged ETFs best suited for short-term trading, not buy-and-hold strategies.

Best Leveraged ETFs To Consider

ProShares UltraPro QQQ (TQQQ)

TQQQ seeks to deliver three times the daily return of the Nasdaq-100 Index. According to ProShares fund disclosures, the ETF is heavily influenced by large-cap technology stocks. Strong liquidity makes it a common tool for short-term momentum trading, but drawdowns can be severe during market pullbacks.

ProShares Ultra S&P 500 (SSO)

SSO targets twice the daily return of the S&P 500. It offers leveraged exposure with slightly less volatility than 3x products. According to ProShares, SSO is often used for short-term bullish views on the broader U.S. market.

ProShares UltraPro S&P 500 (UPRO)

UPRO provides three times the daily performance of the S&P 500 Index. Fund documentation shows it uses derivatives to maintain leverage, making it sensitive to market swings. It is generally used for brief holding periods rather than extended investments.

Direxion Daily S&P 500 Bull 3X Shares (SPXL)

SPXL is another 3x leveraged S&P 500 ETF with high daily trading volume. According to Direxion, the fund resets leverage daily, which can magnify losses in volatile markets. It is frequently used by active traders reacting to macroeconomic events.

Direxion Daily Semiconductor Bull 3X Shares (SOXL)

SOXL delivers triple daily exposure to U.S. semiconductor stocks. Direxion disclosures show the fund is highly sensitive to earnings reports, guidance changes and chip demand cycles. The combination of sector concentration and leverage makes this one of the most volatile ETFs available.

Why Leveraged ETFs Can Behave Unexpectedly

Because leveraged ETFs reset daily, volatility can erode returns over time — a phenomenon often called volatility decay. According to FINRA, investors who hold leveraged ETFs for longer than one trading session may experience results that differ substantially from the expected multiple.

This effect becomes more pronounced during choppy or sideways markets.

Risks Investors Must Understand

Leveraged ETFs carry elevated risk. The SEC warns that these funds can lose value quickly, especially during periods of market stress. Losses can exceed expectations, and some leveraged ETFs have experienced significant declines during broad market downturns.

For this reason, leveraged ETFs are generally considered inappropriate for long-term investors or retirement accounts.

Final Take to GO

Leveraged ETFs can be powerful tools for short-term trading, but they are not designed for long-term holding. Their daily reset structure, use of derivatives and sensitivity to volatility make them suitable only for investors who understand the risks and actively monitor positions.

For most investors, leveraged ETFs should be used sparingly and tactically, if at all, within a broader, diversified investment strategy.

Information is accurate as of Jan. 22, 2026.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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