Could Investing $10,000 in TQQQ Make You a Millionaire?

For most of the past two decades, major U.S. tech stocks have been a great investment. Between the end of March 2006 and the end of March 2026, the tech-heavy Nasdaq-100 index has gained more than 1,200%. Those returns are more than enough to make you a millionaire.

What if you wanted your money to grow even faster? One way is to use a leveraged exchange-traded fund (ETF) to invest in the Nasdaq-100 index. The ProShares UltraPro QQQ (TQQQ +0.23%) can do that. If this strategy succeeds, your investment growth can skyrocket. But beware: Leveraged ETFs have downside risks and are not appropriate for many investors.

Let’s look at how TQQQ can make you a millionaire — or cause you to lose money faster.

TQQQ: 16 years of annual returns averaging 41%

During the past 16 years, since the end of the global financial crisis, the ProShares UltraPro QQQ has magnified the big gains in U.S. tech stocks. Ever since this fund was established in February 2010, it has delivered average annual returns (by net asset value) of 41%.

Let’s say you had invested $10,000 in TQQQ on the day of the fund’s inception in February 2010 and left that money alone to grow at 41% annually. After 10 years, your money would have grown to $311,400. After 12 years, you would have $619,594. After 14 years, you’d have more than $1 million. And after 16 years, you’d have almost $2.5 million.

Sounds simple, right? Why doesn’t everyone just invest in TQQQ and become a millionaire?

Here’s the downside: Leveraged ETFs can be risky and volatile. When you buy a leveraged ETF, you’re buying stocks with borrowed money. When the Nasdaq-100 index goes up, this leveraged ETF goes up even faster. But when the Nasdaq-100 goes down, TQQQ will decline faster, too.

Why TQQQ might not be the best choice for investors

If you invest $10,000 in TQQQ today, you’re investing in the Nasdaq-100 index with the amplifying power of leverage. The top holdings in TQQQ are Nvidia (5.6% of the fund), Apple (5.01%), Microsoft (3.6%), Amazon (2.9%), and Tesla (2.5%).

The past 16 years have been great for TQQQ investors, but there is no guarantee that major tech stocks will continue to deliver such strong returns. In the past five years, TQQQ has performed on par with the Nasdaq-100 index and only somewhat outperformed the S&P 500 index.

Data by YCharts.

The returns of this ETF might not be worth the risks. And TQQQ charges rather high fees: Its net expense ratio is 0.82%.

Leveraged ETFs are a complex investment for sophisticated investors who can accept the risks. But leverage makes your losses get bigger, too. Leveraged ETFs are not the right choice for most people saving for retirement.

Yes, TQQQ could make you a millionaire if you can stomach the risks and volatility along the way. But most investors might be better off buying the Invesco QQQ Trust (QQQ +0.11%), which mirrors the performance of the Nasdaq-100 without the added volatility.