QLD and SPXL Offer Distinct Leverage for Growth Investors
SPXL and QLD are both leveraged ETFs, but SPXL targets triple the S 500’s daily move while QLD seeks double the Nasdaq-100, leading to different sector tilts and risk profiles.
Direxion Daily S 500 Bull 3X Shares (NYSEMKT:SPXL) is built to deliver three times the daily performance of the S 500 Index, offering amplified exposure to a broad swath of U.S. large caps. ProShares - Ultra QQQ (NYSEMKT:QLD) aims for double the daily returns of the tech-focused Nasdaq-100. Both funds use daily leverage resets and are designed for investors seeking short-term, high-octane exposure, but their underlying holdings and sector weights differ significantly.
Beta measures price volatility relative to the S 500.
Source Fool.com