5 Best 3x Leveraged ETFs to Buy in Q2 2025

Trade your favourite markets with our top-rated broker, eToro.

eToro 4.6/5

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Visit site

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Leveraged ETFs are unique funds that uses financial derivatives and debt to amplify returns of an underlying index. As such, instead of investing in an ETF like Invesco QQQ, you can invest in the TQQQ fund and make three times the returns if things go well. 

Most of these funds allow users to generate two or three times the daily return of the index. As a result, because they rebalance each day, one is able to compound their returns each day. 

There are two main types of leveraged ETFs: long and inverse. Long funds benefit when the index rises while inverse do well when it drops. Here are some of the best leveraged ETFs to buy.

Best 3x leveraged ETFs to buy now

Based on returns, total assets under management, and prevailing market conditions, we have selected our top 10 3x leveraged ETFs:

1. ProShares UltraPro QQQ (TQQQ)

• Assets: $23 billion
• Expense ratio: 0.88%
• Year of inception: 2010
• 5-year performance: 391%
• Dividend yield: 0.95%

The ProShares UltraPro QQQ ETF is one of the best leveraged ETF to invest in. This fund tracks and then applies leverage on the Nasdaq 100 index, which focuses on the top technology companies in the United States. 

It is a good fund to invest in because of how this index has performed over time. While the fund has suffered major drawdowns as it did during the Covid-19 pandemic, dot com bubble, and the Global Financial Crisis, these drops have usually been temporary and the fund has eventually bounced back. 

This performance explains why the ProShares Short QQQ (SQQQ), its inverse version has plunged by over 99% over time.

2. Direxion Daily Semiconductor Bull 3X Shares (SOXL)

• Assets: $10.7 billion
• Expense ratio: 0.76%
• Year of inception: 2010
• 5-year performance: 528%
• Dividend yield: 0.51%

The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) is another top leveraged ETF to buy and hold, as evidenced by its performance. It has jumped by more than 528% in the past five years and 2,827% in the past decade, 

SOXL has done well because of the crucial role that semiconductors play in the world today. In addition to computers, they are now found in devices like smartphones, cars, refrigerators, and smartwatches. They are also used in data centers, where they power technologies like cloud computing and artificial intelligence.

The role of semiconductors was amplified during the Covid-19 pandemic when supply chain issues stopped the manufacture of most items. Therefore, the SOXL ETF, which tracks companies like Nvidia, Micron, and Taiwan Semiconductor has been a great performer. It has also outperformed other generic ETFs like SOXX and SMH.

3. ProShares UltraPro Dow30 ETF (UDOW)

• Assets: $663 million
• Expense ratio: 0.95%
• Year of inception: 2010
• 5-year performance: 53%
• Dividend yield: 0.95%

The Dow Jones Industrial Average is one of the most popular indices in the world. It has existed for more than 100 years and it typically tracks 30 biggest companies in different areas in the United States.

The ProShares UltraPro Dow30 ETF is a great ETF because it tracks the Dow Jones and amplifies its returns. By tracking this index, it has demonstrated impressive growth over the years. For example, it has continually beaten ETFs that track the index like SPDR Dow Jones fund (DIA). 

4. MicroSectors FANG+ Index 3X Leveraged ETN (FNGU)

• Assets: $5.5 billion
• Expense ratio: 0.95%
• Year of inception: 2018
• 5-year performance: 1,192%
• Dividend yield: N/A

FAANG has been one of the most popular terms in finance in the past few years. It is an acronym for companies like Facebook (Meta Platforms), Apple, Amazon, Netflix, and Google (Alphabet). Over the years, these companies have become market leaders in their respective industries. Most of them have a market cap of over $1 trillion. 

The FNGU ETF, which was launched by BMO, tracks the NYSE FANG+ Index, which tracks these companies. The index also includes other companies that miss in the original FAANG list including Microsoft, Nvidia, and AMD. This is a good fund to invest in because these companies have a strong market share, great balance sheets, and strong record of growth.

5. Direxion Daily Technology 3X Shares ETF (TECL)

• Assets: $3.63 billion
• Expense ratio: 0.94%
• Year of inception: 2008
• 5-year performance: 540%%
• Dividend yield: 0.29

The Direxion Daily Technology 3X Shares ETF (TECL) is another quality leveraged ETF to buy. Like the TQQQ ETF, this fund focuses on the technology sector, where it tracks an index with companies like Nvidia, Microsoft, and Apple.

The benefit of this fund is that it has a long track record of performance, has some of the best companies in the US, and has some numerous catalysts. Technology companies are growing at a faster pace than in other industries and they will likely benefit when the Fed starts cutting interest rates.

Where to buy the best 3x Leveraged ETFs

Most broker accounts and other online trading platforms allow you to trade ETFs, and for some ETFs, this can include tax-efficient trading accounts such as a Stock & Shares ISA or Self-Invested Pension Plan (SIPP) in the UK.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

Plus500 review

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.

Best 3x leveraged ETFs

Min. Deposit n/a

Fees -

No. assets n/a

Demo account -

Visit site

What is a 3x leveraged ETF?

Leverage means trading or investing with borrowed money, in the same way that you might invest in a house by putting down a £10,000 deposit and borrowing another £90,000 as a mortgage from a bank. In this example, you have 10x leverage, which amplifies your gains such that you notionally double your £10,000 “investment”(an increase of 100%) if the value of your house rises by just 10% from £100,000 to £110,000.

A three times leveraged ETF triples your returns. If the underlying market — let’s say the FTSE 100 index — rises by 10%, your investment increases by 30%. Except that it doesn’t. Not exactly, because of the way derivatives are used under-the-covers to achieve the leverage, which makes leveraged ETFs more useful over the short term for day traders rather than long-term investors.

One more word of warning about leveraged ETFs. They amplify your losses as well as your gains! So, you need to identify your risk tolerance and stick with it. And be especially careful about “short” ETFs which go down when the underlying market goes up, and vice versa.

Are 3x leveraged ETFs a good investment?

3x Leveraged ETFs let ordinary investors (i.e., those with standard stockbroker share-dealing accounts) do the sorts of things that traders do with spread bets, contracts-for-difference (CFDs), or options: amplify gains through leverage, and “go short” to benefit from falling markets.

Be especially careful about investing in a short leveraged ETF. Any losses during a bull market will not only be amplified but are also potentially unlimited (because, theoretically, an underlying index or other asset can go on rising forever).

Methodology: How we choose the best 3x leveraged ETFs

At Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.

• Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
• ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
• Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
• Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
• Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.

FAQs